How to Decide How Much Homeowners Insurance You Need | Blog | Vargas & Vargas Insurance

duda
Black calendar icon with a small square date marker
August 24, 2021

Figuring out how much  homeowners insurance  you need to cover your home and belongings can be challenging. But there are steps you can take to determine what types of insurance you may need and how much you should purchase. Here are some tips for calculating how much homeowners insurance will meet your needs.

Determine Local Risks

Most homeowners insurance plans cover:

  • Basic storm damage
  • Interior water damage from burst pipes
  • Fires
  • Other types of damage that any homeowner could sporadically experience.

But most homeowners insurance policies do not automatically extend to severe flooding from hurricanes or other types of natural disasters that do not affect homeowners in all parts of the country. 

For this reason, you will need to assess what specific issues your home may be prone to based on your location. Then you can determine whether you need to purchase extra policies, such as  flood insurance, on top of your regular homeowners insurance policy. 

Determine the Overall Value of Replacing Your Home

Knowing approximately  how much replacing your home would cost if it were completely lost is also important. It’s another key to determining how much homeowners insurance you should have. This should include the value of your home itself and your possession. It should also include any costs associated with having your home rebuilt. 

This information can generally be determined by this formula: multiply the square footage of your home by the approximate cost to rebuild per square foot. But this formula is not always accurate. Other factors to consider that may help you come up with a better estimate include:

  • The materials used to build your home
  • Any improvement projects you may have done over the years
  • Any vintage or other unique features your property has

At Vargas & Vargas Insurance, we prioritize protecting you and your property. We don’t work for your insurance company. Contact us today  to learn more about how we can help you determine how much homeowners insurance you need to keep your home and property adequately covered without overpaying.  

< Older Post

Newer Post >

About the Author

Carlos Vargas

Carlos Vargas

Carlos Vargas is the Founder and President of Vargas & Vargas Insurance Agency. He began his career in 1980 as a captive agent for a large national insurance company, but chose to become an independent insurance broker so he could offer clients better coverage options and more competitive products.


With 46 years of experience, Carlos believes strongly in the value of relationships and helping clients understand their insurance so they can make better decisions. In addition to leading the agency's vision and strategy, Carlos is deeply committed to community engagement and educating the public about insurance.


Outside of work, Carlos enjoys spending time with his wife, their sons and their families, and friends.

+ Reviews
Barbara Y.

Patricia

Michele O.

Frieda S.

Melinda H.

Jim S.

Alexa T.

Richard M.

Reggie B.

Antonio B.

Melanie F.

Esther G.

Colleen H.

Our Services

More Articles


Man smiling and waving beside text asking, “You sold your car, what should you do with license plates?”

If You Sold Your Car, What Should You Do With The License Plates? | Blog | Vargas & Vargas Insurance

By duda • March 6, 2023
In Massachusetts, all drivers are required to register their vehicles and purchase compulsory auto insurance coverage. To ensure that drivers comply with state insurance laws, drivers must turn in their license plates before canceling their auto insurance policy. And if you are transferring your Vehicle’s ownership, it is your responsibility to properly register and insure the car before driving on state roads. Leaving your license plate on the car could make you liable for the actions of another driver.

What Is Umbrella Insurance Policy, Do You Need It? | Blog | Vargas & Vargas Insurance

By duda • March 4, 2023
A personal umbrella policy provides additional liability protection beyond the liability limits that you now carry on your home, renters, or condo insurance and auto insurance. If you are sued and exhaust your existing liability coverage, the umbrella policy will take care of the remainder up to the limit you selected.