Homeowners Insurance Coverages

You understand your home and assets better than anyone else. We can help you use that knowledge to choose the right coverage limits for your policy.

Estimate the cost of rebuilding your home

Here are a few things to keep in mind:

Begin by estimating your home’s replacement cost. This figure isn’t based on what you paid for the house, the size of your mortgage, or the value of the land. Instead, it reflects the cost to rebuild your home, which will guide you in selecting the appropriate coverage limit.

Consider these factors:

  1. Age of Your Home: Modern building codes may raise the rebuilding costs for older homes.

  2. 2. Local Construction Costs: Labor and material prices can differ by region. Consult reputable contractors to understand the rebuilding costs for homes like yours in your area. Wee can also assist by using a home replacement cost estimator.

  • Have you made renovations to your home? Whether you remodeled your kitchen or bathroom or added premium features like a marble floor or custom woodwork, be sure to include the value of these upgrades in your estimate. Unique features may require specialized materials or labor, which can increase replacement costs.

  • Your homeowners policy can cover the replacement cost of personal property that is stolen, damaged, or destroyed, provided you have purchased replacement cost coverage—up to the limits of your policy. Creating a detailed inventory of your possessions and their values can assist you in selecting the right coverage, expedite the claims process, and serve as verification for losses if needed for tax purposes.

    Take a thorough walk through your home, room by room, and create a detailed list of everything you own—furniture, electronics, appliances, tools, and more. Don’t forget everyday items like clothing, linens, dishes, and sports equipment, as well as anything stored away.

    Be as specific as possible by including descriptions, serial numbers, and purchase dates. Document everything with photos or videos.

    Store your household inventory securely, whether in a fireproof safe, safe deposit box, with a trusted friend, or online in cloud storage. Remember to update your inventory whenever you acquire new items. Consider using a home inventory app to help you organize, update, and maintain your records efficiently.

  • A standard homeowners policy may cover items like jewelry and fine art, but only up to a specific limit. It likely won't cover the full value of a $10,000 ring or a $7,000 painting. Identify these valuable items and consult your Farmers agent about personal articles floaters. These can enhance your coverage limits and may offer more comprehensive protection, although they might require additional documentation.

  • The more assets you have, the greater your vulnerability if someone decides to sue you. To establish your liability limits, consider your net worth and the level of protection you desire.

    You might also explore a personal umbrella policy, which can extend your liability coverage beyond the maximum limits of your existing policies (such as auto, home, motorcycle, and boat) by up to $10 million.

    Please note that some optional coverages may not be available in every state. *Excess liability coverage for U M/U I M is available up to $1 million only.

  • Think about the additional costs of living elsewhere while your home is being repaired or rebuilt—this expense is often overlooked when selecting homeowners coverage.