If you want to figure out how much coverage you should have, first you have to figure out the replacement value of your home. That’s what it would cost to repair or rebuild your home at today’s prices, including materials and labor. Insurers can help you appraise, or evaluate, your home to find this value. Don’t be shocked at a number that seems higher than you expected, especially if you’re living in an up-and-coming area.

It’s wise to cover at least 80% of your home’s replacement value, though your mortgage provider may require you to cover the amount of your mortgage, at minimum. Many experts even advise covering the full amount.  You should add the value of the belongings in your home into your replacement value if you want them covered as well — especially if you own a lot of expensive things like electronics, jewelry, antiques, or collectibles.

Keep a record Taking notes on your belongings will help if you ever need to be reimbursed. Click here to learn more!

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