Primary Structure

• At a minimum, your homeowner's insurance policy will protect the structure of your home. Choose a policy limit adequate to rebuild your entire home in case of a total loss. Inadequate policy limits may result in your insurance company paying only a portion of the claimed damage. A common endorsement exists to provide coverage 10 to 25 percent above the face amount to compensate for inflationary costs.
  
  

Separate Structures

• You may have structures on your property besides your primary home, such as a detached garage or shed. Your insurance policy pays for damages to these structures as well. The limit for damages to these buildings is typically 10 percent of the limit for the primary home. Higher limits can be purchased for additional premiums.
  
  

Personal Property

• Your belongings are also protected by your homeowner's insurance up to your policy limit. A common limit for personal property is 40 percent of the amount of insurance on the home. You can buy additional coverage if you feel the standard limit is not high enough.
  
  

Loss of Use

• Some homeowner's insurance policies have a coverage called loss of use which pays for your relocation and living expenses after a loss if your home is uninhabitable during repairs. This coverage can be available either as part of the policy package or as an endorsement so check your policy to determine whether or not you are covered for this exposure.
  
  

Liability

• Homeowner's insurance comes with personal liability protection. This protection typically covers all damages for which you are legally liable, regardless of your location. Therefore, liability pays for your guests' injuries on your property but may also pay for other costs, such as damage you cause to someone else's home or injuries you cause while rollerblading.
  
  

Property Settlement Types

• Your homeowner's insurance policy will settle property claims as replacement cost (RC) or actual cash value (ACV). RC policies will purchase new items to replace old ones, regardless of their current market value, but ACV policies depreciate damaged items according to age and condition at the time of loss. ACV policies can usually be endorsed for RC protection for additional premiums.