One of the most difficult questions to answer when designing your insurance is “how much should I insure my home for”?
The right answer is that you should choose a home limit that will exceed the total loss of your home by $1. Duh, right? But what actually seems to happen is that agents spend no time getting to know your home, spend no time sharing with you actual construction costs of recent claims, and spend no time educating you on the methodology, importance, and impact of selecting such a limit.
I bet if you showed your current home insurance policy to an agent other than yours they’ll probably quote the exact same limit as you have now. Try it! But if you’re serious about defending your real estate asset, please work with an agent who will visit your home, counsel you on recent experiences, and educate you on all the things that will help you make the best decision for you.