Home Home insurance Coverage How do I know if I have enough insurance on my house? It’s worth $450,000. How do I know if I have enough insurance on my house? It’s worth $450,000. By Barbara Marquand | Posted on September 12, 2012 Why you can trust Insure.com Quality Verified At Insure.com, we are committed to providing the timely, accurate and expert information consumers need to make smart insurance decisions. All our content is written and reviewed by industry professionals and insurance experts. Our team carefully vets our rate data to ensure we only provide reliable and up-to-date insurance pricing. We follow the highest editorial standards. Our content is based solely on objective research and data gathering. We maintain strict editorial independence to ensure unbiased coverage of the insurance industry. Forget real estate market value. Insurance value is all about construction costs. In some cases the cost to rebuild might exceed the resale value of your home, especially in a depressed housing market when construction materials and labor costs remain stable as housing prices decline. In other cases, the cost to rebuild your home might be below its market value. The real estate value, after all, includes the land, which isn’t factored into the cost to replace the building. Your insurance agent should be able to provide guidance on the appropriate coverage amount. Many victims of disasters find out too late that their homes were underinsured. Among victims of the 2010 Fourmile Canyon wildfire near Boulder, Colo., 64 percent of homeowners reported being underinsured on their dwelling by an average of $200,000, according to a survey by United Policyholders, a consumer advocacy group. See When your home’s market value is less than its insurance value. QuickTake What is medical payments coverage on home insurance? What is other structures coverage in home insurance? Personal liability insurance: What it is and why you need it Guide to personal property insurance Guide to home renovation insurance Is mortgage disability insurance worth it? Alternative heating can cause surprise fires Should gun owners carry more insurance? What's the better security system: Dog or home alarm? When you inherit a house, you don't automatically inherit the home insurance policy Insurance for your drone Insuring your valuables How safe are safes? Children's play dates gone wrong! Home insurance for landscaping and plants See more > In case you missed it What is HO-6 condo insurance and what does it cover? Average homeowners insurance cost by ZIP code in 2024 What is dwelling coverage and how much do you need? Personal liability insurance: What it is and why you need it Renters insurance quotes: Compare rates Hurricanes and home insurance: How hurricane insurance works Replacement cost policies for your home: Getting what you pay for How much do claims increase home insurance rates? Mobile home insurance cost and coverage in 2024 Homeowners insurance basics Home Insurance Advisor The Best Cheap Homeowners Insurance of 2021: Guide How much flood insurance do I need? How to bundle home and auto insurance policies to save money The largest home insurance companies by market share Home insurance discounts for cheaper rates Guide to dog liability insurance: cost and coverage Do you have an emergency go-bag? Most Americans don’t 1/1 Related Articles Is it legal for my home insurance company to drop my coverage after filing a claim? By Shivani Gite What is HO-6 condo insurance and what does it cover? By Shivani Gite What is hurricane insurance? By Shivani Gite Are landlords responsible for tree damage to your car? By Casey Bond Does homeowners insurance cover rotting wood? By Penny Gusner Can my homeowners insurance get canceled because my house is empty? By Nupur Gambhir Get instant quotes now ! Please enter valid zip Get Quotes