Home insurance (buildings and contents) protects against structural damage and loss of possessions. Always insure the rebuild cost — not the market value, which includes land.
| Symbol | Name | Unit | Description |
|---|---|---|---|
| ReplacementCost | Home reconstruction cost estimate | Currency | — |
| LiabilityCoverage | Liability coverage limit | Currency ($100k–$500k) | — |
| Deductible | Deductible per claim | Currency ($250–$2,500) | — |
| PremiumAnnual | Annual insurance premium | Currency | — |
- 1Buildings: insure rebuild cost (structure and fittings)
- 2Contents: insure replacement value of possessions
- 3Typical cost: 0.25–0.5% of insured value per year
- 4Higher excess/deductible reduces premium
Homeowner risk management
Mortgage requirement compliance
Post-disaster recovery planning
Replacement cost estimation
Country-specific standards, units, or regulations:
| Cover | Includes |
|---|---|
| Buildings | Walls, roof, floors, fixed fittings |
| Contents | Furniture, electronics, clothing |
| Liability | Injuries on your property |
| Flood (add-on) | Water damage |
How much dwelling coverage do I need?
Replacement cost (rebuild, not including land or foundation). Underinsuring leaves you liable. Get appraisal or contractor estimate. Inflation riders adjust coverage annually.
What's the difference between actual cash value and replacement cost?
Actual cash value (ACV): current market value less depreciation. Replacement cost: full rebuild amount. Replacement cost more expensive but better. Old houses prefer ACV (saves premium, risky coverage).
What doesn't homeowners insurance cover?
Floods (separate policy), earthquakes (separate endorsement), maintenance failures (roof rot), sinkholes (varies). Hurricanes often covered. Check exclusions carefully.
References