How Much Homeowners Insurance Do You Need? 
Owning a home can be a big investment , in terms of money , time , and memories . You should make sure that you have enough homeowners insurance to protect that investment . I always tell my clients that homeowners insurance is n't meant to pay off your mortgage if something happens to it , it should be there to rebuild your dream if something happens . I use what is known as the Reconstruction Cost to calculate how much homeowners insurance you need . That coverage amount consists not only of how much it would cost to rebuild your home , but also includes some commonly overlooked things , like cost to demolish and remove debris , and possible changes in building codes and laws that could increase the cost to rebuild . Most of the other coverage , like other structures , personal property , and loss of use coverage are a percentage of the reconstruction cost . 