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Home Insurance 101

A standard HO-3 policy includes four pillars:

Dwelling The physical structure of your home. Always insure at replacement cost, not actual cash value.

Personal Property Your belongings inside the home. Typically 50–70% of dwelling coverage. Pay the small upgrade to replacement cost.

Loss of Use Temporary living expenses if your home is uninhabitable. Typically 20% of dwelling coverage.

Liability Protects you if someone is injured on your property or you damage someone else's property. Carry at least $300k; consider an umbrella policy for more.