Readers Question:
How much home insurance should I buy?
My current package insures my home for the amount of the purchase price, which seems high. Should I insure the structure and property for the amount it would cost to rebuild, rather than the full purchase price?
Best Reader’s Answer:
Do you have a mortgage? If you do, the mortgage company will want to see the coverage on the dwelling be at least as high as the mortgage balance.
Otherwise I would talk to a local agent that can calculate the replacement cost on your house. They will ask you questions like – What is the total square feet in the house? What type of building materials were used?
