How To Read A Home Insurance Quote? 
Homeowners insurance is comprised of several variables but I 'll discuss some of the major components . First and foremost you want a Replacement Cost policy . Second , you need to work with your agent to determine the proper amount of Replacement Cost coverage -LRB- the cost to rebuild your home -RRB- . Once this amount is determined the other coverage lines are a percentage of the dwelling coverage . Here 's an example of the major components : Dwelling - $ 500,000 Other Structures - $ 50,000 -LRB- 10 % -RRB- Personal Property - $ 350,000 -LRB- 70 % -RRB- Next , you need to select your deductible . Deductibles typically range from $ 500 - % of your dwelling coverage . I recommend at least a $ 1,000 deductible because you do not want to file small claims on a home policy . There are other optional coverages that are very important such as Water/Sewer Backup and Law and Ordinance coverage . Identity Theft and scheduled items can also be added . As always it 's best to discuss your options with an independent agent who can present several options specific to your needs . 