A standard homeowners policy protects against fire, lightning, wind, storms, hail, explosions, riots, aircraft wrecks, vehicle crashes, smoke, vandalism, theft, breaking glass, falling objects, weight of snow or sleet, collapsing buildings, freezing of plumbing fixtures, electrical damage and water damage from plumbing, heating or air conditioning systems, according to the Insurance Information Institute, a Washington, D.C.-based nonprofit group for the insurance industry. A basic policy can be expanded to include additional coverage, such as for floods and earthquakes and even workers' compensation for servants or contractors. Insurance experts recommend that homeowners obtain insurance equal to the full replacement value of the home.
Some experts recommend an inflation rider, which increases coverage as the home increases in value.
Guaranteed replacement insurance is a more comprehensive policy. With these sorts of policies, limits on the policies are not as common, because complete coverage is more explicit.