What Percentage Of Home Value Is Insurance?

  1. 21750 POINTS
    Jim Winkler
    CEO/Owner, Winkler Financial Group, Houston, Texas
    Great question! Taken literally, the answer to your question is none. The fact that your home is insured does not add to your homes value at all. The new buyer will need to reinsure it, so there is no additional value added. If you are asking what amount you should insure your home for, that's a great question also! You want to insure your home not for its resale value, but for what it would cost you to rebuild it. Keep safe somewhere details of the footage, details, extra's, etc. that will help you determine that value. You can also get an idea from your zip code, and most companies will have a calculator to determine that average cost. Then you want to add to that the value of your belongings. You will want to have serial and model numbers, pictures of unusual or special items, and that list kept safely somewhere also. There are some really helpful software programs that can help you with that. The total of those numbers is the amount that you want to have coverage for. If you need help, please feel free to contact me, I'm happy to help. Thanks for asking!
    Answered on May 6, 2014
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  2. 14231 POINTS
    Tom Sheehan
    Agency Owner, The Thomas G Sheehan Agency, 27 Glen Road Sandy Hook, CT 06482
    Frankly, I am a little unsure of the question.  I believe you are asking what percentage of your home's value needs to be insured?   The answer is 100 % of the reconstruction value of your home should be the stated dwelling amount.  Properly establishing the reconstruction value and insuring to that amount is the job of your Insurance Professional so be sure to discuss the particular details of your home carefully.
    Answered on May 6, 2014
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  3. 37376 POINTS
    David G. Pipes, CLU®, RICP®
    Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
    There are fire policies available that allow you to purchase coverage that is lower than 100% of the replacement value.  They are not very common.  They have a provision that applies a “co-insurance” clause which states that if you insure your house to 50% of the value of the house and have a claim the company will apply that same percentage to adjust the claim.  Your $40,000 repair bill will be paid at approximately $20,000.
    Answered on May 7, 2014
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