How Much Home Insurance Do I Need?

New Jersey Home Insurance Companies

Purchasing a home the first time is a major expense. Starting all over can be downright frightening. New Jersey home insurance companies offer policies that will cover the cost of a new house and all your belongings. How much coverage is enough?

What Is the Home Worth?

To determine the amount of coverage you need, consider the price tag for rebuilding the structure at current prices. Take your square footage amount and multiply it by the local building charge per square foot. You can find out this dollar amount by calling your area’s builders association. This number won’t necessarily match the price you originally paid.

If you have a mortgage through a bank, it may require you to have a homeowner’s policy based on the loan amount. Make sure this amount coincides with current construction pricing. Don’t include the price of the land.

Factoring Expenses

The amount that it will be to rebuild your home will depend on several factors. Those include:

  • Exterior walls: are they brick, vinyl or wood
  • Number of bathrooms
  • Special features such as fireplaces or arched windows
  • Style of home: one story or more
  • Local construction rates
  • Square footage of the house

The amount of coverage you will need from one of the New Jersey home insurance companies will depend on the size and type of home that you have. It will also be determined by the cost of local construction.