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Home Insurance Types of Coverage Dwelling This is the residence/premise shown on the policy declaration page. This coverage will also cover structures that are connected to the dwelling or under construction and intended for your own use, as well as structures that are not connected, such as detached garages, tool sheds, fences, patios and swimming pools. It's this coverage where the replacement cost is very important. How can I be sure my home is fully protected? Make sure that your replacement cost is current. This pays for rebuilding your home should it be destroyed, for instance, by fire. An important option to consider is guaranteed replacement cost of the dwelling. With this option, the insurance company will pay the actual cost to replace your home rather than the fair market value. You must balance the benefit of this coverage with its cost. Contents In the standard policy, this personal property coverage is usually set as a percentage of your dwelling. This covers appliances, furniture, tools, clothing, etc. You'll want to make sure that your coverage is sufficient to cover a total loss. You can have the policy pay you the actual cash value (depreciated value) of an item, or you can modify the coverage to pay replacement cost. Personal Articles Rider For personal property, such as furs, jewelry, collectibles, etc., that are valued higher than coverage limits under the policy. What is the best way to insure that I'll get the best value for my personal property if someone else steals from my home? It's up to you to prove to the insurance company not only that you had the item to begin with, but also the approximate condition of the item at the time of loss. Therefore you'll want to maintain an inventory list or a video of these items in a safe place outside your home. If using a video, include a picture of the current newspaper in the beginning of the tape with the date clearly visible, as well as an audio declaration stating that the items in the video do indeed belong to you. Either way, record, record, record. Loss of use This coverage is to compensate during a period of time when your dwelling is uninhabitable or under repair due to loss. It can also pay you for loss of rental income if a portion of your home is rented. Liability The liability coverage in your homeowners policy will protect you from lawsuits due to bodily damage or property damage caused by you or a family member. It will also make medical payments for these bodily injuries and pay for the actual physical damage to others' properties. You set these limits, so make sure you set this at a level that will protect your net worth. < PREVIOUS NEXT> #38599