How Much Home Insurance Is Needed? 
The amount of coverage carried on a home is determined by the cost to replace the building and contents and the requirements of your lender . In California lenders can not require coverage in excess of the cost of replacement but when prices rise lenders sometimes pressure homeowners to carry more coverage to protect their investment . The insurance company will require an independent evaluation of the reconstruction cost and your agent is the best person to help you . There has been a great deal of discussion concerning catastrophic losses where neighborhoods or communities are destroyed . The problem then is a shortage of material and contractors to restore damaged dwellings . In these circumstances building costs can escalate quickly . If you sense that you might be in such a potential situation be sure to discuss that with your agent . 