Each week your local newspaper or television stations probably run stories and photos of people whose homes have recently burned to the ground.
Most homeowners carry enough fire insurance to pay off their mortgage.
Banks and mortgage companies require it. Nor do all policies automatically increase coverage amounts to reflect changes in construction costs. Market value replacement guarantees that if your house burns down, the insurance company will pay the cost of building a comparable home at current construction prices. Here's where it gets sticky. Your insurance company will want you to make a list of the items you lost in the fire and their value.