1. 255 POINTS
    Randy Lamm
    This is really a loaded question. The right coverage amounts for each person rely on factors such as: 1) the value of your home, 2) the amount of contents/personal property coverage you need to properly insure your belongings, 3) if your situation requires that you include additional coverage options for items such as scheduled jewelry or other expensive items, 4) if you have a pool and/or a trampoline.  Additionally, the type of policy you purchase can impact your coverage amounts as well.  A broader replacement cost policy will probably include and might even require higher coverage limits than a more limited actual cash value policy.

    Because of the multiple factors that are in play for each specific homeowner, using a broad-brush approach isn't suggested when reviewing home insurance coverage options. We suggest that you review with a professional independent insurance broker that has the coverage options available to properly insure your home and belongings.
    Answered on May 29, 2014
  2. 37376 POINTS
    David G. Pipes, CLU®, RICP®
    Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
    Insurance companies normally accept the services of several rating companies that compute the cost of replacing your home.  This is the value the company will use to set the value used for residence coverage.  The standard homeowner’s policy uses a formula to determine coverage for personal property and it is normally adequate.  If you have unique property you need to discuss that with your agent.  Often overlooked, the liability coverage you select and price should be as high as you can afford.  A lawsuit can ruin your financial world.
    Answered on May 29, 2014
  3. 21750 POINTS
    Jim Winkler
    CEO/Owner, Winkler Financial Group, Houston, Texas
    That is an excellent question! The first thing that I would tell you is to find a good agent to help you with this. You will want to have a good idea of the value of your belongings, and decide whether it is better for you to pay more, and get replacement value (paid for new) or pay less, and get actual value ( paid, but minus age and depreciation values). You will also want to have an idea of whether you have a collection, or items that might need to be specially insured. Again, a good agent can help you with those decisions. Good luck, and thanks for asking!
    Answered on May 29, 2014
  4. 14231 POINTS
    Tom Sheehan
    Agency Owner, The Thomas G Sheehan Agency, 27 Glen Road Sandy Hook, CT 06482
    Most companies will be looking to "Insure to Value" meaning that your Insurance Professional will inspect your home and complete an accurate reconstruction analysis to determine the proper amount of coverage to recommend.  Insuring to the calculated reconstruction value means that you won't be over insured or pay too much for coverage you don't need.  It is also necessary in order to be sure that the Guaranteed Replacement clause will apply.
    Answered on May 29, 2014
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