Homeowner insurance is essential for protecting your family’s financial security in the event of a disaster. Determining the appropriate amount of coverage you need is challenging, however, and if you overlook certain factors, it could cost you immensely down the road.

Below, Steven Hall – Farmers Insurance of Mountain Grove, MO, shares five tips for calculating the amount of coverage you need:

1. Determine the Cost of Rebuilding Your Home

Homeowner insurance is ultimately designed to cover the cost of repairing or rebuilding a home following a catastrophe, so many people simply purchase coverage of their mortgage; however, the cost of rebuilding your home may not necessarily be the same as the property’s appraised value. Fortunately, a Farmers insurance agent will help you calculate the cost of rebuilding your home by taking into account quotes from local contractors. An agent will also ensure you don’t overlook the costs of living elsewhere while your home is repaired.  

2. Consider Any Upgrades You Have Installed

If you remodeled your home or replaced the appliances in recent years, make sure you take this into account when calculating the cost of rebuilding it. You do not want to base those costs on the home’s original structure if there are significant upgrades throughout the property.

3. Assess Your Personal Property

Homeowner insurance can cover the things in your home in addition to the structure itself. Take an inventory of your personal property, so you can calculate how much it would cost to replace it all. This includes appliances, furniture, and electronics.

4. Consider Getting Additional Coverage for Any Expensive Items

If you have a few expensive items, like jewelry, artwork, or musical instruments, consider adding personal property floaters to your policy. A floater is an additional coverage for specific items, and it will help keep down your overall premium.

5. Don’t Forget Liability Coverage

If someone hurts themselves on your property, your homeowner insurance can cover the damages, depending on the type of policy you purchase. Consider your assets and what might be at risk should someone sue you for serious injuries.

If you want to purchase homeowners, auto, or life insurance, turn to Steven Hall – Farmers Insurance in Mountain Grove, MO. To get a quote on homeowner insurance, visit the agency online or call (417) 926-7900. You can also stay up-to-date with social media updates by liking them on Facebook or following them on Twitter.