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Kriener Insurance

724 Bielenberg Drive, Ste 5
Woodbury, MN 55125

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Minnesota Insurance Blog

How Much Home Insurance Do You Need?

Most people have no idea how much home insurance they need. Many people don’t even know what it is. Home insurance is a type of insurance that covers damage to your house and its contents in a disaster, such as fire or theft. It’s essential to have the proper insurance in place if anything happens to your home.

The first thing you need to know about home insurance is that it’s not one-size-fits-all. It would be best if you got a plan that matches your needs. How much insurance do you need? It depends on the value of the home and its contents. The cost of rebuilding your home, plus the price of replacing personal property like furniture, clothing, and appliances, should be factored into the equation.

Homeowners’ policies offer three different types of insurance: Actual Cash Value (ACV), Replacement Cost Coverage (RCC), and Extended Replacement Cost Coverage (ERCC).

Actual Cash Value (ACV)

This type of insurance is the cheapest, but it covers only what your home and possessions are currently worth. With this coverage, your insurer subtracts depreciation from the replacement cost to arrive at a dollar amount for reimbursement.

Replacement Cost Coverage (RCC)

This type of policy insures your home and possessions for their replacement value. Replacement cost coverage doesn’t consider depreciation, so it costs more than ACV insurance.

Extended Replacement Cost Coverage (ERCC)

This is the most expensive policy, but it offers the best protection. An ERCC policy will pay to replace your home and possessions even if it costs more than the original value.

Understanding How Much Home Insurance You Need

Insurance comes down to two basic numbers: the replacement value of your home and its contents and the deductible. Your insurance agent can help you determine how much insurance you need to keep your home, possessions, family, and future intact.

Home insurance is something that every homeowner should have. Kriener Insurance offers an array of home insurance options in Woodbury, MN. Call us today for a free quote.

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