*Loan,banking and credit>>>homeowner insurance

How much of homeowners insurance should one get? How is reconstruction cost calculated in the Silicon Valley?

Most sites recommend using reconstruction cost into account but for a typical ranch house in the bay area what would that be? Please share any past experiences.

When you apply for homeowner's insurance, the insurer will ask how much did you pay for the home and what year did you buy it. If you bought it this past year, the amount of the insurance should be approximately the same as your purchasing price since that is what you owe the bank. ( My AAA homeowner's insurance will continue to make the mortgage payments in addition to paying the teardown, and removal of the damaged house, the plans for the new home, permits, etc and re building of the home. Also my policy with AAA has a provision for my renting another place while my home is being rebuilt.) If you have an older home that has appreciated in value, you need to call a real estate agent and find out what a home like yours sells where you live. Actually, AAA let me know how much it would cost to re build in my area.

You might want to shop different, reputable insurance companies. There is quite a difference among them about the price of the policy.

I hope this helps.