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How much insurance do I need for my home?

Homeowners insurance coverage

Insurance coverage is important for any of life’s accidents, but insuring your home is one of the most important and most necessary coverage plans a person can have. Just as there are many different types of homes, there are many different types of homeowners. That’s why it’s necessary for people to understand the details of what they own and the costs behind it.


Homeowners insurance can be detailed and complicated, so that’s why there are agents to walk through what coverage is needed based on customer needs. There are six main types of homeowners insurance coverage: 


  • Dwelling
  • Other structures
  • Personal property
  • Personal liability
  • Medical payments to others
  • Additional living expenses


Before shopping for specific coverage plans, there are some things that should be put in order from the customer’s vantage point. Here is a list that customers can bring with them that will help speed along the process from the jump: 


  • An itemized list of personal belongings and their individual values of worth
  • Total valued combined assets 
  • Estimate of how much it would cost to rebuild the home entirely
  • Monthly living expenses for all people living in the home


By understanding what money has gone into your home and what it would cost to rebuild it, customers can find policies that will best provide coverage in case it’s needed. Furthermore, understanding the value of personal items and cost of daily expenses beforehand will help the process if a claim is ever needed to be made. Nickerson Insurance Systems, Inc. has covered many homeowners with many different needs and can help anyone find the right policy for them.

Figuring out how much coverage is needed

For a quick estimate of the cost to rebuild a home, the simple formula is to multiply the square footage of a home by the average cost per square foot in the area. But, this isn’t the sole number to go by when buying coverage. That’s where the agents come into play.


By understanding total costs of living, itemizing valuables, and centralizing all assets, if ever there’s an event that insurance needs to step in, the process will be much easier to manage. Of course, these lists can be updated at any point in time of coverage so it’s important to update as assets are purchased or sold. It’s very important to keep in mind that inflation and cost of construction varies from when a policy is bought to when it might be claimed. 


The peace of mind that comes with homeowners insurance is worth the cost alone. If the situation arises where that monthly cost of insurance covers what needs to be replaced, that’s when people see the truly invaluable worth of having the right policy for them.

Find out how much homeowners insurance you need with the Nickerson Insurance Systems, Inc. team

Whether you’re a new homeowner or looking to make changes to your current homeowners insurance plan, we’ve got your covered. Our team of experts will help you find the right amount of coverage to cover costs after your home is damaged or destroyed, and at the right cost for you.

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