I love to write about questions my clients have asked in the course of the day.  This week someone asked me how much insurance to get on the house she lives in.  I don't know the specific answer, but I know several important questions to ask yourself if you are wondering the same.

First, I found this answer about insurance in general:

When Do You Need Insurance?

You need insurance when you can not afford to recover from a potential financial loss on your own using your savings or your own financial means. As your savings grow, and your life changes, your need for insurance should be evaluated. 

Thanks to TheBalance.com for this wonderful reflection. 

Let's say, it would destroy your finances to suffer a total loss of your home (i.e. you haven't paid it off and wouldn't have anywhere else to live if it was lost). If you want to insure for replacement value, ask your insurance person how much it would cost to replace -  or if your agent isn't local (shame on you!), call a local contractor and ask what it costs per square foot to build a home in your town. 

What if your house actually burned down (or got washed out or an earthquake took it down)? You would need to make the case to your insurance carrier what the condition of your home was prior to the devastation.  Something you can do today is to list or video the finishes and possessions in your home and put the list in a safe place outside your home. 

Those are some thoughts on the topic.  Do you have additional suggestions?