How do I know how much homeowner’s insurance I need?

house-1528960Purchasing homeowner’s insurance or renter’s insurance is very important to ensure you are protected if and when a disaster occurs that causes property destruction. When a flood, fire, or theft, takes place, you may lose everything. The loss of your home is one thing, but the loss of your personal belongings with years of fond memories associated with those items can be devastating. It is important that you make sure you have enough insurance to cover your property.

In addition, certain personal belongings require special insurance because they are not covered under standard insurance policies. These items can include collectibles, fine art, and other items of high value. You will first have to analyze how much your home, including all of your personal belongings, is worth. You do not have to include the value of the land that the home was built on in this analysis.

There are many factors that must be considered when determining the value of your home. It is crucial that you determine how much it would cost to replace every aspect of your home in the event that it is completely destroyed in a disaster. The insurance company will consider how many rooms your home has, what type of frame it was made out of, the square footage, and more, to determine the replacement value. However, the insurance company is the one who is paying to replace it so they may try to tell you that your home is not worth as much as it truly is. You should have a public adjuster or a contractor determine how much it may truly be worth.

If you have questions about how to value your home when determining the amount of insurance you need, contact an experienced insurance law attorney who can provide you with assistance, especially if you feel the insurance company is undervaluing your home.

The Law Office of Craig A. Blumberg is an experienced New York City insurance law firm. If you require quality assistance after having suffered property loss, please contact our firm to schedule a free initial consultation.