What Should I Look For When Buying Home Insurance? 
-- > Normal 0 Of course , the most important issue to consider before selecting any insurance company is be certain they are financially sound and able to back up the promises they make in their insurance policies . Beyond that , for a homeowners policy consider what you are looking for . Why even consider any agent or insurance company if they are unwilling or unable to offer the coverage you want and need ? So , what do you want your home policy to do ? Rebuild your home if it is destroyed ? Pay you to replace your personal property if it is damaged or destroyed ? Defend you and pay a judgment if you are sued for injuring someone or damaging his or her property ? If so , Id suggest looking for an insurer that offers : Guaranteed Replacement Cost Coverage on your home . Many companies dont . Most insurance companies will pay you to rebuild your house but they will stop paying when you limit is reached . Following a major storm , wild fire or other disaster , building materials and available labor become scarce . Prices increase and consumers find they may not have enough insurance . Guaranteed Replacement Cost Coverage automatically increases your limit to whatever you need to rebuild your home , even if it is double or triple the amount of insurance you carry . Replacement Cost and Special Coverage on your personal property . Most homeowners policies limit coverage on your personal property to a number of specific named perils . Look for insurers who offer Special Coverage , often referred to as all - risk , replacement cost coverage not only on your home but your personal property as well . Personal Liability coverage is an important yet often overlooked part of your homeowners policy . Many families include high limit Personal Umbrella coverage as part of their insurance program . Personal Umbrellas are often considered the least expensive way to purchase high personal liability limits . In addition , these policies should have broader insuring agreements with fewer exclusions and limitations than standard home and auto policies . If these features are available , I would then consider the annual premium and possibly the availability of a local agent who is committed to assisting you should you have a problem . 