Why Care about Homeowners Insurance? For most of us, our houses are our largest assets.
We take out huge loans and commit to pay them off over the span of decades.
We live in our houses, and we center our lives around them.
They are a source of pride and security for our families.
So it is important for us to make sure that this investment and center of family life is protected by the right coverage.
How to Calculate Homeowners Insurance Policy Amounts When you try to calculate your coverage amount, you have to think about the amount it would actually take to rebuild your house.
Think about some reasons that the purchase price of your house, or current purchase prices of similar homes in your area, may not be a good way to calculate the amount of insurance you need.

• Did you purchase an older home? The actual purchase price may be higher or lower than rebuilding costs.
  If land is cheap in your area, you may spend a lot more to rebuild a new house than you did to buy the older home you bought.
  
• If the house contains upgrades and modifications, you probably cannot replace them in a new home for what you paid.
  
• On the other hand, if land is very expensive where you live, your rebuilding costs may actually be lower.
  You already have a lot, and you just need to build a home.
  In some areas, people actually buy older homes, tear them down, and replace them with new houses.
  In this case, the land is considered more valuable than the original structure.
  

You need to find the average price per square foot of rebuilding in your area.
You can probably get this information from local builders, insurance agents, or realtors.
You may get a low, average, and high estimate.
The low figure would be for a very basic house.
The high figure would include upgrades.
These numbers may be multiplied by the square feet of your home to give you accurate estimates.
Compare Plan Premiums and Policies Now you can take your estimated numbers and price insurance policy premiums.
You will have to balance the coverage you desire against the reality of affordable rates.
The maximum coverage for rebuilding is not the only part of a home policy, but it is a good place to start.
You also need to consider other features of your policy.
You will need home contents insurance to replace the property you keep inside your home.
Again, you need to consider replacement costs of these items, and not just how much they are worth now.
You will also want some coverage so you can find temporary housing if your home is damaged.
Home policies also come with liability insurance to protect you against a claim that a guest was injured on your property.
Do not forget to compare the financial stability and customer service record of any insurer you are considering.
It will not do you any good to save a few bucks on premiums if your company is not around to help you when you need to make a claim.
Shop For Insurance It is easy to shop for insurance plans ad policies these days.
You can take advantage of online quote forms.
All you have to do is enter your basic details one time.
You will key in things like your zip code, square feet of your home, etc.
This information may be looked at by agents, or it may be used by a computer program.
You can get competitive home insurance quotes returned to you so you can consider them in the privacy of your home or office.