1. 1615 POINTS
    Ryan AndrewPRO
    President, The Andrew Agency, Richmond, VA
    Homeowners insurance is comprised of several variables but I'll discuss some of the major components. First and foremost you want a Replacement Cost policy. Second, you need to work with your agent to determine the proper amount of Replacement Cost coverage (the cost to rebuild your home). Once this amount is determined the other coverage lines are a percentage of the dwelling coverage. Here's an example of the major components:

    Dwelling - $500,000
    Other Structures - $50,000 (10%)
    Personal Property - $350,000 (70%)

    Next, you need to select your deductible. Deductibles typically range from $500 - % of your dwelling coverage. I recommend at least a $1,000 deductible because you do not want to file small claims on a home policy.

    There are other optional coverages that are very important such as Water/Sewer Backup and Law and Ordinance coverage. Identity Theft and scheduled items can also be added. As always it's best to discuss your options with an independent agent who can present several options specific to your needs.
    Answered on May 15, 2013
  2. 1265 POINTS
    Drew Delaney, J.D., CLCSPRO
    Commercial Lines Producer, Secure Investors Group, INC, Troy, Michigan
    I would just like to elaborate on the above answer:

    Coverage is designated by letters and sections, where section one covers property and section two covers liability.

    SECTION 1:
    A - Dwelling 
    B - Other Structures 
    C - Personal Property
    D - Loss of use

    SECTION 2:
    E - Liability (negligence must be proven)
    F - Medical Payments to others (no negligence has to be proven)

    In later sections will be the additional coverage such as scheduled property, additional causes of loss (flood, earthquake) and any scheduled exclusions.  

    I hope this puts the above answer in context of your policy.
    Answered on May 15, 2013
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