Do You Have Enough Home Insurance?

You have home insurance because it protects your dwelling, personal belongings, provides liability protection and covers you against loss of use. But do you know how much home insurance you need? Are you overpaying or underpaying your premiums? 

Buying home insurance is one thing, but buying adequate home insurance is another thing. For this reason, stay on as TAS Insurance Agency of Phillipsburg, NJ helps you to figure out how much home insurance you need. 

How much insurance do you need for your dwelling?

To answer this question, you need to understand the difference between replacement cost and market value. It’s easy to confuse the two, but that’s why you have an insurance agent to guide you. Market value includes the value of the land. It’s the price you get if you were to sell your house today in an open market. On the other hand, replacement value is the amount it would cost to build your home today. 


If you want to determine the amount of home insurance you need, using the replacement value is more accurate. But since building costs go up every year, it’s vital to update your home insurance policy to capture the changes in the building costs. For instance, if you purchased your house five years ago at $200,000, today it would cost, let say, $300,000 to rebuild. In this case, you need to insure your home against $300,000. Otherwise, you would need to finance the $10,000 difference if a disaster were to strike today.

How much should you insure your content for?

Similarly, if you want to determine how much you should insure your belongings, consider the cost of replacing them now and not how much you paid to buy them. If you were to lose your assets today, how much would it cost you? This amount will be your insured value.

Are you still unsure of how much home insurance you need? Please contact TAS Insurance Agency. Besides, you can visit our Phillipsburg, NJ offices to chat with one of our agents.