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Homeowners Insurance: How much Dwelling Coverage do I really need?

IdaClaire
4 years ago
last modified: 4 years ago

Our homeowner’s policy is up for annual renewal (for the 2019-2020 period), and we are not pleased with the increase in premium. It’s almost $600 more than it was for the 2018-2019 period, and over $800 more than it was for 2017-2018. We are, therefore, obtaining quotes from other insurance companies, but it’s perplexing that the quotes are sort of all over the place, particularly as far as the amount of coverage they’re saying we should have on just the dwelling portion of our home. That’s just the structure itself – no separate structures, no personal property, not the land it’s on – JUST the house itself. Let’s say our taxing authority values the house itself at $325,000 (not including the land). Our current insurer’s quote is based upon $374,000 of Dwelling Coverage. A different insurer’s quote is based upon $268,000 of Dwelling Coverage, and yet another came back with $421,500. They’re all pulling information on our house from SOMEWHERE (they have all of the particulars), so I can’t figure out why there is such a disparity in the amounts these different insurers seem to think we should have for Dwelling Coverage. How do I know which amount is closest to being correct? I’ll confess I’ve never spent a whole lot of time examining our policy, but now that the premiums are hitting harder, I really want to get this right.


By the way, we do bundle home/auto and have the applicable discounts in place already.

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