Homeowners insurance is not solely based on the square footage of a home. While the size of a home is a factor, several other considerations go into calculating the amount of coverage needed for a homeowner’s insurance policy. Factors such as the age of the home, the materials used to construct the home, the location of the home, and the level of risk associated with the area all come into play. If you are looking to estimate the coverage needed for your home insurance policy, it is essential to understand that the amount of coverage you need may be lower than the value of your home in real estate or the price at which it was sold. To determine the amount of coverage, you need to multiply your home’s area by the average price per square foot for building an affordable home in your region. Here are some helpful steps in estimating your home insurance coverage:
Determine the area of your home in square footage.
Research the average price per square foot for building an affordable home in your region.
Multiply the area of your home by the average price per square foot to determine your estimated insurance coverage needed.
By taking these steps and consulting with your insurance provider, you can ensure that you have the appropriate coverage for your home, no matter its size or value.