How To Determine Amount Of Homeowners Insurance Needed? 
Adequate home insurance coverage is very important , and the discussion should be had with a professional independent agent . The best way to answer this question is to provide some general information for the primary/main coverage types on the home insurance policy -LRB- please note that each state and company policy coverages and requirements vary . This is why it is important to review in detail with your professional independent agent -RRB- . Dwelling value : this is the coverage limit that protects the structure/dwelling . Ideally , this coverage limit needs to be set at the proper replacement cost valuation . In the event of a total loss -LRB- fire , tornado ... -RRB- , what is the amount of insurance coverage on your dwelling that you would need to get you back in that exact same house?The answer to this question is the dwelling amount coverage limit that your home insurance policy should have . Personal property/contents coverage limit : this is the coverage that provides protection for your personal belongings . It is suggested to take pictures of your belongings -LRB- especially your more valuable items -RRB- as well as have copies of the pictures and any receipts to provide proof of ownership in the event of a claim . Again , like with the dwelling value we discussed above , the question here is what is the value of all of your items in your house ? Or , what would thecost be toget everythingwhat you have now in your house if a fire or tornado destroyed it all?The answer to this question is the personal property contents limit that your home insurance policy should have . Also - please note that if you have a mortgage on your home , most often the lender will require the loan amount or 100 % ofthecalculated structurereplacement value to be the required dwelling coverage amount.This amount can vary , and to ensure that you are getting the coverage protection you need without overinsuring , please review with your local professional independent agent . Liability coverage/medical pay to others : this is about the least-expensive part of a home insurance policy , but it is very important to have . The minimal amount of liability coverage suggested to have for this coverage category is $ 300,000 , although usually the bump up in coverage to the $ 500,000 liability limit is usually very small . And , the medical payments to others coverage should be at $ 5000 . These coverages protect you from injury that an unrelated -LRB- visitor -RRB- sustains while on your property , or that you are deemed to be liabile -LRB- responsible -RRB- for . Please note that these are just a couple of the important insurance coverages that are included on your home insurance . There are many other coverages that might be included with the policy that you choose or there might be other suggested coverages that you can add to your home policy that gives you the extra coverage protection that you need . There is not a general coverage limit or value that is used for determining the proper coverages for your home insurance . Every client is different and so are their needs . Make sure that you review what your needs and coverage requirements are , and let an independent agent create a policy specifically for you and your needs . 