This is How Much You Should Insure Your House or condo for
When you're buying a house or a condo, like a car you need to get insurance. Unlike auto insurance where the insurance company determines how much your car and repairs are worth (only when you file a claim) you or your insurance agent needs to determine how much it would cost to rebuild your house or condo if it was a "Totaled Loss" (amount of insurance).
Depending on the insurance carrier they call the amount of insurance either the Dwelling or Building limit, aka Coverage A.
Since many people buy their insurance online they may have a hard time figuring this out. If you're one of these people congratulations, you've found the right page.
It really depends on where your home is located at, because the cost of living and goods are different in each area. From where I'm located in San Francisco "the cheapest place to live in America" (just kidding) the cost per square foot to rebuild a single family home will cost around $350.00/sqft. Meaning if your house was 1000/sqft it'll cost about $350,000 to rebuild your home with standard materials and features.
For homes with higher end materials and construction it can go up to $400.00-$800.00/sqft. If you're living in the suburbs, it'll cost around $250/sqft.
Condos are a little different, because condo owner's pay HOA dues and those dues cover the cost of maintaining and operating the building along with other expenses such as insurance.
Typically, the Master HOA insurance policy covers the condo's exterior structures and common areas and you as a condo unit owner are responsible for insuring it also known as the "Walls-in" coverage.
Here in San Francisco it cost around $125.00-$150.00/sqft to rebuild a standard unit.
Knowing the amount of insurance on your home is obviously important, because you don't want to to in a situation where you need to file a claim and you didn't buy enough insurance.
Your insurance rate will reflect the amount of coverage you purchase, so don't be cheap and spend the little extra $ and time to make sure it's properly covered.
If you're still unsure on how much you should insure your house or condo for, just ask an insurance agent that specializes in this area.