If you ever thought about home insurance, you probably asked yourself “how much home insurance do I really need?” The truth is, you will always need a little more than ‘enough'. However, I think you should ask yourself what you need covered. If you want to know how much home insurance you really need, ask yourself these 3 basic questions.

How much can I Afford?

The first and foremost question you should ask yourself is how much home insurance can you afford. If you have a stable job, earn in 6 figures, policies such as the HO-2 or even the HO-3 are great. However, for those that cannot afford such policies, the HO-1 is more than enough.

What Type of Home do I live in?

The type of home you live in really does dictate what type of home insurance you need. There are separate policies for tenants and condominium owners.

If you are a tenant, you should consider the HO-4 policy. For tenants with significant items in their home, it is wise to get added liability insurance.

If you live in a condominium, the HO-6 policy is enough for you. Not only does it cover your personal property like the HO-4 policy, it has liability coverage as well.

How Old is my Home?

Normally, regular home insurance policies will not cover old homes. However, the HO-8 will. For older homes, particularly ones that do not look like they may survive the next decade, the HO-8 policy is enough; it's actually just right. This policy gives you all the benefits of the HO-1 policy and provides guaranteed home replacement.

Sometimes to answer one question you need to answer another, or 3 more in this case. By answering the 3 questions above, you can easily find out just how much home insurance you actually need. As a rule of thumb, always get a little more than you need.