Global Public Adjusters

How to Determine Your Insurance Coverage Needs

How to determine your insurance coverage needs


  1. First, calculate the replacement cost of your home. This is the amount it would cost to rebuild your home if it were destroyed.
  2. Next, calculate the value of all your possessions. This is the total value of everything you own, including furniture, electronics, and jewelry.
  3. Once you have these numbers, you can start estimating your coverage needs.


For property damage, you’ll need enough coverage to rebuild your home if it’s destroyed. The average cost to rebuild a home in the US is $125 per square foot, so multiply your home’s square footage by $125 to get an estimate of its replacement cost. Your possessions are worth much more than their replacement value. To insure them for their full value, you’ll need to purchase a personal property endorsement or floater. This adds extra protection for your belongings and covers them for their full value, regardless of their original purchase price. For liability coverage, you’ll need at least $300,000 per occurrence. This protection will cover you if someone is injured on your property and decides to sue you. To cover any potential medical expenses caused as a result of an accident on your property, you’ll need at least $100,000 per occurrence.


For loss of use coverage, you’ll need enough to cover your housing costs while your home is under repair or rebuilt after a loss. The average cost to rent a furnished apartment in the US is $1,500 per month, so multiply this by 24 months to get an estimate of how much coverage you’ll need. Finally, make sure you have enough coverage for your personal property items that are not covered by your homeowner’s policy. This might include things like expensive jewelry or collectibles. The best way to insure these items is with a scheduled personal property endorsement or floater policy. To determine your home’s rebuild cost, ask your insurer for a home replacement cost estimate or use an online calculator. You can also get a good estimate by multiplying your home’s square footage by the average cost per square foot to rebuild in your area.


A good rule of thumb is to purchase a policy with dwelling coverage that’s equal to at least 80% of your home’s rebuild cost. That way, you’ll have some protection in the event that your home is completely destroyed.” So it would cost about $176,000 to rebuild our house, given its current size and the average rebuild cost in our area. We should make sure our homeowners insurance policy has a dwelling coverage limit of at least $143,200 (80% of $176,000). In today’s world, it’s important to be fully protected by insurance in case of unforeseen events. One important type of insurance is personal property coverage, which protects your belongings in case of theft, damage, or destruction. To accurately estimate the amount of personal property coverage you’ll need, you first need to calculate the value of your belongings.


First, take an inventory of your personal belongings. This will help you categorize and value your belongings by room and type of property. Following this, calculate the total value of your belongings and determine how much insurance coverage you need. If you don’t have time or effort to take an inventory yourself, there are online tools that can help. One such tool is called Know Your Stuff, and it’s offered by the Insurance Information Institute. With this tool, you can create a home inventory online in minutes. It asks for information about your possessions, such as where they’re stored, how much they cost, and when they were purchased. Another option is to use a moving company’s inventory form. Many moving companies will provide their customers with an inventory form to complete prior to their move. Their forms asks for detailed information about each item being moved, including its make and model, purchase date, and sale price.


No matter which calculation method you choose, it’s important to have an accurate estimate of the value of your belongings. This will make sure that you have enough personal property coverage in case of an unfortunate event. To determine how much of each coverage you need, start by multiplying your home’s replacement cost by 1.5. This will give you a solid estimate for your property damage coverage limit. Then, multiply the value of your personal belongings by .3 to get a good estimate for your personal property coverage limit. Finally, multiply the value of your assets by .5 to get a good estimate for your liability coverage limit.