Buying a home is possibly the best investment you can make for you and your family. Whether you are moving from renting to buying, purchasing a new house, or simply relocating, you are no doubt weighing different factors such as price, size, neighborhood, etc. Another decision to weigh is homeowners insurance. 

How much coverage do you need?

You'll want insurance that covers the cost of rebuilding your house in the event that it gets destroyed.

• If you purchase a home that has many upgrades, it may cost more to rebuild due to a shortage of materials or specialized labor. Farmers has a Homeowners policy which offers up to 125% extended replacement cost, meaning that you may receive up to 25% above your dwelling limit in the event of a covered loss and if you feel you need even more coverage, Farmers offers a policy with up to 150% extended replacement cost, meaning that you may receive up to 50% above your dwelling limit in the event of a covered loss.
• If you purchase an older home, it may need to be rebuilt according to today's building code standards, adding to the cost. Policies from some competitors may only cover reconstruction cost, but the Farmers homeowners policy includes an additional 10% above the reconstruction cost to cover for additional expenses due to building ordinance or law.

The primary factors that will determine that cost include:

• Local construction costs and the square footage of the structure
• The type of exterior wall construction-frame, masonry (brick or stone) or veneer-and the type of roof
• The style of the house (ranch, colonial)
• The number of bathrooms and other rooms
• Attached garages, fireplaces, exterior trim and other special features like arched windows.