Determing How Much Insurance You Need

Property Protection: The better your coverage, the less you will have to pay out of your own pocket if disaster strikes.

Self Protection: You need enough liability coverage to protect yourself from lawsuits resulting from your negligence.

Lender Requirements: Your lender may require you to cover the house for at least the amount of the mortgage or the replacement cost of the dwelling. You are not required to purchase insurance from the insurer recommended by your lender.

Policy Requirements: Insurers may impose some coverage requirements for replacement cost protection. Preferred plans usually require policy limits at 100% of replacement cost. Standard plans usually require policy limits of at least 80% of replacement cost.