Coverage is pretty straight forward if you know what to look for

Most insurance companies have computer programs that will give a very good estimate on what it takes to rebuild your home but the final decision is always up to you. This is not what the house would sell for, but what it would take to build the same house at today's prices. Would your coverage be enough to rebuild it? What if your house burned down? Your lender will require you to carry Homeowners insurance, and it makes sense to insure one of your biggest, if not the biggest, physical assets. If you have a claim, your first responsibility is to make an inventory of what was lost, and having pictures makes that a lot easier. It is a good idea to take pictures of your personal property and keep them off-site. Ask if you can have replacement cost coverage. Insurance companies automatically give homeowners between 60 and 75% (varies by company) of whatever the building is insured for to cover personal items. How much do you need?

Personal property includes your clothes, TV/stereo, furniture, toys, and just about everything that would not be part of the building. If you have put up a nice outbuilding or have more than one unattached structure, you need to confirm that you have enough "other structures" coverage. It covers any buildings on the property that are not attached to the home. This will be 10% of your building coverage, unless you pay for it to be more. Your coverage probably contains an inflation rider that will automatically help your insurance keep pace with the rising cost of building or repairing your home. They do this because building materials and labor can fluctuate (such as after a hurricane) so you need the coverage to expand in case that happens. Insurance companies will usually give you extra coverage, if you insure it for what they think it should be insured for.