Typically, you should have enough home insurance coverage to adequately protect your home, your personal belongings and your financial well-being in the event of a covered claim. A licensed home insurance agent is your best resource for this estimate, however, typically you will want to have enough dwelling coverage to cover the complete rebuild of your home in case of a total loss.
Dwelling coverage is calculated by multiplying the square footage of your home by local building costs per square foot. For example, if average building costs in your area are $150/sq. ft. and you have a 2,000 sq. ft. home then you would typically not want to have less than $300,000 worth of dwelling coverage. Use our homeowners insurance calculator to get an estimate on your dwelling coverage.
Some homeowners may need to add additional coverage to their policy if they require higher liability limits or if they need to add a rider for an item of particular value.