Dwelling limit vs. market value
The dwelling limit should reflect local rebuild cost — materials and labor — which can be higher or lower than the market or purchase price.
Personal property
Usually a percentage of the dwelling limit. High-value items like jewelry, instruments or collectibles often need a scheduled endorsement.
Replacement cost vs. actual cash value
Replacement cost pays to replace with new; actual cash value subtracts depreciation. The difference can be substantial on a roof or older contents.
Liability and loss of use
Personal liability covers injuries or damage you are responsible for; loss of use helps with living costs while a covered home is uninhabitable.
What is usually excluded
Flood and earthquake are generally excluded and need separate policies. Maintenance and wear are never covered.
General educational information, not insurance advice or a quote. Coverage terms, availability and pricing are determined by the insurer and vary by state.
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