Market value represents what you could sell your house for at the time of appraisal. Replacement cost is what it would cost to rebuild, not including the value of the land and foundation. Structure - In most cases, a house is not considered adequately insured unless it is covered for at least 80 percent of the replacement cost. Keep in mind, however, that the purchase price of a home includes the cost of land and foundation which are not destroyed in a fire. Landscaping - Generally, trees and plants surrounding the house are insured up to five percent of the level of coverage on the structure.
Additional insurance is almost always available at an extra cost.
However, do not expect insurance to replace a 200 year-old oak tree with a duplicate, since that is impossible. Personal Property - Normally, personal property is insured for up to 50 percent of the coverage on the house structure. However, there are actual dollar limits on such items on jewelry, silverware, stamps and coin collections, and furs. These policies will independently insure specific items against theft, damage of any other type of loss in the home or away from home. Most expensive items must be professionally appraised before they will be insured under a floater.