3 minute readHome
Enough to rebuild your home at today's local construction cost, replace your belongings, cover liability at a limit that protects your assets, and pay for a realistic displacement period. Market value and loan balance are the wrong anchors — both can be far from rebuild cost.
What you need to know
Start with the dwelling limit
Use a current replacement-cost estimate that reflects your finishes and any renovations, not a purchase-price rule of thumb.
Then contents and liability
Contents are often set at a percentage of dwelling; high-value items may need scheduling. Liability should be sized to your assets and income, with an umbrella above it.
Then the deductible
A higher deductible lowers premium but must be money you could produce tomorrow. Choose the number you could write a check for without stress.
Common mistakes
- Insuring the home to market value or loan balance instead of today's rebuild cost.
- Leaving liability at the lowest available limit with no umbrella above it.
- Assuming flood and earthquake are included — both are separate in California.
- Never scheduling jewelry, art or other items that carry low special limits.
- Filing small claims that cost more in renewal pricing than they paid out.
When to talk to an agent
Talk to an agent when your premium jumps, when you renovate or rent out the home, when you are told you are being non-renewed, or any time you cannot tell from the declarations page what your policy would actually pay.
Frequently asked
This article is general information, not a policy or a promise of coverage. What your policy pays depends on its specific terms, limits and exclusions. Ask us to review your actual policy before making a decision.