# I live across the street from 1362 Marlboro Ave. How do I calculate how much home owner insurance do I need?

Asked by Vjpittsburgh, Pittsburgh, PA Sun Nov 4, 2012

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Each insurance company has their own figure usually but for an approximation figure you can take the total covered square footage of your home (not the lot but the actual livable space) and multiply it by \$225/square foot (this is usually the norm amongst insurance underwriters).
Insurance companies use new replacement-cost, which is different from reproduction cost. For example, you would not be able to reproduce a home with asbestos siding or knob-and-tube wiring. Some companies want you to have coverage that is at least 80% of the new replacement-cost. Policies range in price based on options. You can choose between options that include actual-replacement cost or a depreciated-replacement cost. For example, if you had a fire that destroyed your 10-year old TV, actual-replacement cost would provide for a new TV; the depreciated-replacement cost might give you \$50. You can add unique coverage for flood zone, earthquake, home business use, mine subsidence, etc. Your deductible (\$100, \$500, \$1000, etc.) also makes a difference. Price around with different agents until you get the best deal for your situation.
There are many factors that insurance providers use when calculating the amount of coverage and the annual cost of homeowners insurance.

The amount of coverage may be based on the insurance companies estimate of the cost to replace the dwelling, contents, etc. The annual cost of the policy may be based on the amount of coverage (location, estimated replacement cost of the dwelling, age of dwelling, wiring/mechanics, contents, extra coverage's, amount of deductible, etc.). The owners credit may also be considered by the insurance company.

I suggest you contact a minimum of three insurance companies for their estimates and proposals. You may find that they may vary not only in their annual premium but also in what each recommends for the amount of coverage.
Tara is right and you need to contact insurance companies for quotew. Insurance coverage can be based on the cost of replacement of the home and not its market value.
You need to get quotes from insurance companies - it has to do with the value of your home and posessions, the type of coverage you need, as well as many other factors. You really can't figure it out on your own.