-
Step 1
Make sure you know the square footage of your home.
-
Step 2
Check with a building contractor in your area for a cost per square foot to replace your home.
-
Step 3
Check with your insurance agent for a cost per square foot replacement value for your home.
-
Step 4
Once you have this information, make sure you have coverage that is at least eighty percent of the cost to replace your home.
-
Step 5
Make sure you also have a "replacement cost endorsement" on your policy. An endorsement covers the remaining cost of replacing your home as long as you were insured to value of your home. i.e. (insured to 80% value of your home)
-
Step 6
Being improperly insured will cost you money in the event of a partial loss or total loss of the dwelling.
-
Step 7
The most important thing to remember is to discuss with your agent what the proper coverage is in order to protect your assets in the event of a partial or total loss.
