1. 260 POINTS
    Kevin P. Foley, CPA, CPCU
    President, PFT&K insurance Brokers, New Jersey
    Coverage A-Dwelling, on your declaration page is the amount of money your home is insured for against covered perils.
     
    How much should your limit be?
     
    It should be the amount of money you need to rebuild your house from scratch.  That amount of money is called Replacement Cost.
     
    How do you determine the Replacement Cost Value?
     
    To determine the Replacement Cost Value, you need to know or measure the square footage of your home.  You also need to know the special features of your home, like skylights, central vacuums, etc.  You also need to know the quality of your improvements.  For example, are your kitchen and bathroom fixtures Builders Grade or Luxury?
     
    If you can gather that information, call your agent and review it with them.  They should be able to help you come up with a reasonable estimate of your home’s replacement value.
     
    You should revisit the value every three to five years or after you make a significant improvement.  You want to keep pace with your home’s value, but you don’t want to over insurance and waste money.
     
    I hope I've answered your question.  If not, feel free to call, fax or email me.
     
     Kevin P. Foley, CPA, CPCU
     PFT&K Insurance Brokers
     T 877-414-2031
     F 877-405-3025
     E kpfoley[at]kpfoley[dot]com
     W www[dot]kpfoley[dot]com
    Answered on October 4, 2013
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