#compare insurance rates
Things You’ll Need
A copy of your home and/or auto policy
The limits for the structure itself, often called dwelling protection, should be higher than the value of your home. It will cost more to rebuild an older home than it’s actual real estate value. Look in the real estate ads to find brand new homes with the same square footage as yours. The home’s list price should come close to your replacement cost.
The other structures protection is typically 10 percent of the homes value. It should be enough to cover any type of shed or workshop you have on your property. You may think you have enough, but if you have an elaborate woodworking shop or detached garage, you will want to make sure you have adequate coverage to rebuild.
Make sure additional living expenses provides at least 12 months of coverage. Ensuring you have adequate coverage will give you a comfortable place to stay during reconstruction without burdening friends and family.
Your family liability protection should be enough to cover anyone who becomes injured or suffers property damage on your land. You don’t want to skimp in this area. It should be between $300,000 to $400,000, or more to cover medical bills and lawsuits.
Guest medical coverage pays for medical bills of guests who may be injured on your property regardless of fault. Guest medical coverage should be $1,000 to $5,000. You are assuming your guests have their own medical coverage, and if not, your family liability protection should guard against most legal or medical expenses.
One of the most important purposes of auto insurance is to cover medical expenses and property damage inflicted on others. Limits for bodily injury and property damage need to be at least $100,000 for each person, and $300,000 for each occurrence. Property damage coverage needs to be at least $50,000 to $100,000.
The uninsured motorist portion should be at least $25,000 for each person, and $50,000 for each occurrence. This covers the medical bills for you and your passengers, if the accident was another driver’s fault and that driver is uninsured or underinsured.
Collision and comprehensive serve to cover your own vehicle. A newer car,less than five years old and under 100,000 miles, needs this coverage to replace the car if it is totaled. An older car with more than 100,000 miles, may not need this coverage. Its value is so low it’s hardly worth paying for the coverage to replace it.