The basics for how much coverage you need are based on:
- The structure of your home.
- Your family’s personal property.
- The cost of living expense if the home was damaged and needed repair.
- Your liabilities to others.
The structure of your home must be estimated if you need to know how much coverage, the reason behind this is that you want to think of the cost for completely rebuilding your home in case of a disaster. That way you are paying for a amount enough to completely replace your home if need be. You also want to take into account a generalized worth of your families total personal property value. The reason is because you can include this into your home insurance payment and depending on what you choose to cover for example tornadoes,fires,floods, thefts. All of those options are in most cases choose able and this will allow your personal items to be replaced whenever a crisis strikes.
So the cost of living is also something you should be interested in because for example if a flood devastated your house, you would need money to find a temporary solution for your family. That’s where this part of coverage would come in. You want to consider if this happens. how much money would you require to live off and rent a place for your family to live in. Food consumption and any other different amenities your family requires should be estimated into the coverage as well. Also you have to think of any liabilities including someone falling or getting hurt on your property. You can estimate this as well but most companies will understand this is hard to estimate and will most of time just lump it into the Insurance package already.