If you own your home, having the right amount of insurance is important. There are methods that insurance companies use to make sure you have adequate dwelling coverage. In order for an insurance company to provide you with adequate coverage they will need some information about your home. Each home is different, therefore they will need different amounts of coverage. Two homes similar in design and makeup are more likely to have a similar amount of insurance coverage.
Contact your insurance company or agent and ask to speak to a representative about dwelling coverage. They will ask you questions pertaining to your home. One of the things needed is how many square feet are in your home. A home with more square feet will need more coverage. The insurance company will also need to know what your home is made from, such as brick or wood, or if it has vinyl siding. One additional category needed, which the insurance company will be able to access, is the cost of construction in the area where your home is located. The more information you can provide to the insurance company the better. If you have the year your home was built this can be useful as well.
Review the quote for dwelling coverage and note the cost. When you have provided all of the requested information the insurance representative will give you a quote for your dwelling coverage. The amount you are quoted will be sufficient to replace your home if it is destroyed. The insurance representative will also provide you with the amount of your annual insurance premiums. Your annual premiums will impact your mortgage payment if the lender is paying your homeowner's insurance for you.
Review your insurance policy. In approximately 7 to 10 days you will receive your insurance policy in the mail. If you need to verify that you have insurance coverage because you are buying a home you can ask the insurance company to fax a statement that provides evidence of insurance to your mortgage lender. This statement will outline how much coverage you have and some basic terms of your insurance policy, which should be sufficient for the lender to close on your mortgage loan.