I am single and moving out of my parent’s home to a home I just bought. What insurance do I need?
Free Insurance Quote Comparison
Secured with SHA-256 Encryption
UPDATED: Sep 15, 2020
It’s all about you. We want to help you make the right legal decisions.
We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about legal topics and insurance. Our goal is to be an objective, third-party resource for everything legal and insurance related. We update our site regularly, and all content is reviewed by experts.
As a single homeowner, you need to make sure your homeowner policy provides you with sufficient insurance to cover the replacement cost of your home. Insurance companies vary as to how they determine that, either with a physical inspection of the home, a statement from a contractor, or a computer program used to determine replacement cost. The square footage of the home and the going rate for building in the area are the most common way to determine replacement cost. Also, most insurance companies include an endorsement called extended replacement cost, which provides an additional percentage of the insurance amount in case the amount of insurance is not adequate to rebuild the home. This cushion is very valuable, but you should not use it as a way to reduce the insurance on your home. The homeowner policy is a package that includes personal property as a percentage of the home (usually around 70% of the dwelling limit) as well as loss of use.
The homeowner policy also includes liability protection for you at your residence and worldwide. Since you now own property, you have assets you need to protect, so be sure you have adequate liability coverage. Talk to your insurance agent to discuss recommendations and ways to keep the insurance costs within your budget.