Home Insurance for First Home Buyers: How Much Do You Need?

Homeowners insurance is designed to protect you in the event of a loss of property through stealing, destruction or damage. It is, without a doubt, the most crucial financial protection method since most of the things you own are right there in your home.

But just how do you arrive at the homeowners insurance that you need? When setting up your policy, you will want coverage amounts that cover the structure of your home against hazards, liability protection in the event that someone gets hurt in your home, protection against personal property in case your stuff is stolen or damaged, and other living expenses should you be forced to vacate.

Typically, all standard homeowners policies will include the above four elements. But as to how much of each one you need, that should be determined by the level of risk your home faces from damage due to weather. Other factors include the type of property and its value, liability risks such as pools or trampolines, and much more.

Here are the factors you need to consider when deciding the amount of insurance that you need.

  1. What Would It Cost to Rebuild Your Home?

The main reason for insuring your home is to be ready for the worst possible situation. If for some unfortunate reasons, you lose your home to a covered accident, and it has to be completely rebuilt, you would expect that home insurance covers the whole cost (less deductible). But instead of just insuring your home for what you bought it, you need to consider what it would cost you to rebuild the home from scratch. Also, you need to take into account the value of any remodeling or upgrades you have done while living in that home. It is advisable to involve your contractor so that you arrive at a more accurate figure.

  1. How Much Are Your Personal Belongings Worth?

An important element of home insurance policy is its ability to protect your property in case of wind damage, fire or other accidents that are covered. To ensure your policy limits cover all the things in your home, take stock of everything you own—room by room. Other than just estimating the cost of valuables like art and electronics, you also need to include clothing, furniture, home goods, and appliances in your estimate.

  1. How much would it cost you to live temporarily elsewhere in case your home has to be repaired or rebuilt?

If you and your family cannot continue living in your home after a covered accident strikes, how much would you require living in other temporary housing or a hotel? Apart from the cost per night, you will also incur other day-to-day costs in the event that you were displaced temporarily. These include things like the increased cost of transportation, food and more. Langs High Net worth Insurance guys will help you to arrive at an appropriate figure based on the specific property and home.

  1. How much could I be sued for in a personal liability case?

Home insurance involves much more than simply protecting your belongings and home. With the right policy, you won’t even have to pay out of pocket costs if it is established that you are responsible for the bodily injuries your guest suffers. In the event that your policy limit is exceeded by the cost of their injuries, you could be held legally responsible. Make no mistake. Choosing a personal liability limit is not as straightforward as you may think. You need to consider your long-term finances when figuring out the amount of personal liability protection that you will need.


Estimating the amount of homeowner coverage that you will need is a big decision that you shouldn’t take lightly. There are so many things that you will need to consider. For instance, you shouldn’t just insure your home for its present value. Rather, you need to consider what it would cost to rebuild the home from scratch. Other factors you need to take into consideration include the value of your personal belongings, what it would take you to live somewhere temporarily as your home is being built, and the personal liability you might incur. By considering these components, you will arrive at the most accurate figure.