Homeowners Insurance: What to Look for in a Policy?

[Total Refected Power]

We will be closing on a house at the end of July and I am starting to research homewowner's insurance. What is a good policy in general? Does it typically include fire? How much of the purchase price of the house should be covered as not to "lose" money if the house is destroyed? The land will always be there so not in full I assume. Theft should be included as well (full replacement). What are some other issues?

Thanks.

 

[kranky]

Check here at about.com and here's a good, short intro article at insure.com

 

[Total Refected Power]

Thanks kranky.

Late night bump.

 

[Ulfwald]

Make sure you get a "Replacement value" policy for all your possesions.

 

[Maetryx]

Maetryx here,

Homeowner's insurance is sometimes referred to as fire insurance, so yes, it does cover fire. Generally, homeowner's insurance is for replacement cost. So it covers the cost of making you a new home if you lose the first one.

But like auto insurance, there is a deductible. As much as $1000, I think (or maybe that's normal) so a loss of $1050 through some covered accident will net you $50 from the insurance if you go with the $1000 deductible.

Also, it will NOT come with earthquake insurance if you don't specify it. Nor flood insurance.