Common questions about home insurance

Your dwelling coverage should equal the cost to completely rebuild your home at today's construction prices—not the market value or what you paid. This includes materials, labor, and code upgrades. An insurance agent can help you calculate this. Personal property coverage is typically 50-70% of dwelling coverage.

Replacement cost pays to replace damaged items with new ones of similar quality. Actual cash value deducts depreciation—so a 5-year-old TV would pay much less. Replacement cost coverage costs more but provides better protection. Most experts recommend it for both dwelling and personal property.

Personal home insurance typically covers home office equipment like computers as personal property. However, if you run a business from home, you may need additional coverage. Business inventory, equipment used primarily for business, and liability from business activities usually aren't covered by standard policies.

Possibly. One claim might not affect your rates, but multiple claims in a short period often lead to increases or even non-renewal. Water damage and liability claims are particularly concerning to insurers. Consider paying small claims out of pocket to protect your rates.

First, ensure everyone's safety. Then: 1) Document damage with photos and video before cleaning up. 2) Prevent further damage (cover broken windows, stop running water). 3) Contact your insurer to start the claims process. 4) Keep receipts for any emergency repairs or living expenses.

Bundle with auto insurance, increase your deductible, install security and safety features, maintain a good credit score, and shop around periodically. Ask about all available discounts—many people qualify for discounts they don't know about.

Standard policies cover jewelry and valuables but with sublimits—often $1,500-$2,500 for jewelry, regardless of your personal property limit. High-value items like engagement rings, art, or collectibles should be scheduled (listed individually) for full coverage.

HO-3 is the most common policy type. It covers your dwelling for all perils except specific exclusions (open perils) but covers personal property only for listed perils (named perils). HO-5 provides open perils coverage for both dwelling and personal property—better protection but higher cost.