How do you Determine the Amount of Insurance on my House?

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One of the largest factors in a homeowner’s premium is the limit of insurance that is placed on your home. A lot of our clients want to know how we determine this limit so we decided to write an article on it.

Whenever we quote your policy in one of our companies they require us to run a replacement cost estimator on the house. Some of the items an estimator will take into account are:

  • Siding material
  • Roofing complexity and material
  • Construction type
  • Square footage or living space
  • Finished / Unfinished basements
  • Number and quality of bathrooms
  • Number and quality of kitchens
  • Number of fireplaces
  • Foundation material
  • Type of HVAC (i.e. gas or electric)
  • Flooring material

As always, this list isn’t all inclusive and each estimator will usually calculate a different amount. It’s important to understand that carrying the proper limit of insurance on your house is usually a requirement that’s written into the policy contract. If you’re not properly insured at a time of loss it could result in a penalty on the overall loss amount.

Do you have a question that you’d like to ask? Email us at and we might use it in a future entry!

This article was written by Joshua Palmer

Josh is a licensed insurance agent with the Mayflower Wollam Insurance Group. He is a graduate of Mineral Ridge High School, Class of 2008, and attended the United States Air Force Academy, Class of 2012, where he earned a Bachelor of Science in Meteorology. Josh brings a unique background into the agency and focuses on a mixture of personal, commercial, farm and life insurance. His office is located in our Cortland location.