You need enough insurance to cover the following:

• The structure of your home.
• Your personal possessions.
• The cost of additional living expenses if your home is damaged and you have to live elsewhere during repairs.
• Your liability to others.

The structure

You need enough insurance to cover the cost of rebuilding your home at current construction costs. Don't include the cost of the land. And don't base your rebuilding costs on the price you paid for your home. The cost of rebuilding could be more or less than the price you paid or could sell it for today.

Some banks require you to buy homeowners insurance to cover the amount of your mortgage. If the limit of your insurance policy is based on your mortgage, make sure it's enough to cover the cost of rebuilding. (If your mortgage is paid off, don't cancel your homeowners policy. Homeowners insurance protects your investment in your home.)

For a quick estimate of the amount of insurance you need, multiply the total square footage of your home by local building costs per square foot. To find out construction costs in your community, call your local real estate agent, builders association or insurance agent.

Factors that will determine the cost of rebuilding your home:

• Local construction costs.
• The square footage of the structure.
• The type of exterior wall construction -- frame, masonry (brick or stone) or veneer.The style of the house (ranch, colonial).
• The number of bathrooms and other rooms.
• The type of roof and materials used.
• Other structures on the premises such as garages, sheds.Fireplaces, exterior trim and other special features like arched windows.
• Whether the house, or parts of it like the kitchen, were custom built.Improvement to your home – adding a second bathroom, enlarging the kitchen or other additions that have added value to your home

Standard homeowners policies provide coverage for disasters such as damage due to fire, lightning, hail, explosions and theft. They do not cover floods, earthquakes or damage caused by lack of routine maintenance.

Flood insurance is available from the Federal Insurance Administration ( http://www.fema.gov ) and earthquake coverage is available from private insurance companies or, in California, also through the California Earthquake Authority ( http://www.earthquakeauthority.com )

Replacement cost policies.

Most policies cover replacement cost for damage to the structure. A replacement cost policy pays for the repair or replacement of damaged property with materials of similar kind and quality. There is no deduction for depreciation -- the decrease in value due to age, wear and tear, and other factors.

If you purchase a flood insurance policy, coverage for the structure is available on a replacement cost basis.

Guaranteed or extended replacement cost coverage.

After a major hurricane or a tornado, building materials and construction workers are often in great demand. This can push rebuilding costs above homeowners policy limits, leaving you without enough money to cover the bill. To protect against such a situation, you can buy a policy that pays more than the policy limits.

An extended replacement cost policy will pay an extra 20 percent or more above the limits, depending on the insurance company. A guaranteed replacement cost policy will pay whatever it costs to rebuild your home as it was before the fire or other disaster.

Building codes.

Building codes are updated periodically and may have changed significantly since your home was built. If your home is badly damaged, you may be required to rebuild your home to meet new building codes. Generally, homeowners insurance policies (even a guaranteed replacement cost policy) won't pay for the extra expense of rebuilding to code. Many insurance companies offer an Ordinance or Law endorsement that pays a specified amount toward these costs. (An endorsement is a form attached to an insurance policy that changes what the policy covers.)

Inflation guard.

Consider adding an inflation guard clause to your policy. This automatically adjusts the dwelling limit when you renew your policy to reflect current construction costs in your area.

Older homes.

If you own an older home, you may not be able to buy a replacement cost policy. Instead, you may have to buy a modified replacement cost policy. This means that instead of repairing or replacing features typical of older homes, like plaster walls and wooden floors, with similar materials, the policy will pay for repairs using the standard building materials and construction techniques in use today.

Insurance companies differ greatly in how they insure older homes. Some won't insure older homes for the replacement cost because of the expense of re-creating special features like wall and ceiling moldings and carvings. Other companies will insure older homes for the replacement cost as long as the dwelling is in good condition.

If you can't insure your home for the replacement cost or choose not to do so -- in some cases, the cost of replacing a large old home is so high that you might not want to replace it with a house of the same size -- make sure the limits of the policy are high enough to provide you with a house of acceptable size and quality.

Your personal possessions

Most homeowners insurance policies provide coverage for your personal possessions for approximately 50% to 70% of the amount of insurance you have on the structure or "dwelling" of your home. The limits of the policy typically appear on the Declarations Page under Section I, Coverages, A. Dwelling.

To determine if this is enough coverage, you need to conduct a home inventory. This is a detailed list of everything you own and information related to the cost to replace these items if they were stolen or destroyed by a disaster such as a fire. If you think you need more coverage, contact your agent or insurance company representative and ask for higher limits for your personal possessions.

Replacement Cost or Actual Cash Value.

You can insure your possessions in two ways. You can either insure your belongings for their actual cash value or their replacement cost.

A cash value policy pays the cost to replace your belongings minus depreciation. A replacement cost policy, on the other hand, reimburses you for the cost to replace the item.

Suppose, for example, a fire destroys a 10-year-old TV set in your living room. If you have a replacement cost policy for the contents of your home, the insurance company will pay to replace the TV set with a new one. If you have an actual cash value policy, it will pay only a percentage of the cost of a new TV set because the TV has been used for 10 years and is worth a lot less than its original cost. Some replacement cost policies also replace the item and deliver it to you.

Generally, the price of replacement cost coverage is about 10% more than actual cash value. If you need a flood insurance policy, you can purchase flood insurance for your belongings. It is only available, however, on an actual cash value basis.

Insuring expensive items with floaters/endorsements.

There may be limits on how much coverage you get for expensive items such as jewelry, silverware and furs. Generally, there is a limit on jewelry for $1,000 to $2,000. You should ask your agent or look it up in your policy. This information is in Section I, Personal Property, Special Limits of Liability. Insurance companies may also place a limit on what they'll pay for computers.

If the limits are too low, consider buying a special personal property floater or an endorsement. These allow you to insure these items individually or as a collection. With floaters and endorsements, there is no deductible. You are charged a premium based on what the item (or collection) is, where you live and its dollar value.

You can determine the value by providing your agent with a recent receipt or getting the item or collection appraised.

Additional living expenses after a disaster

This is a very important feature of a standard homeowners insurance policy. This pays the additional costs of temporarily living away from your home if you can't live in it due to a fire, severe storm or other insured disaster. It covers hotel bills, restaurant meals and other living expenses incurred while your home is being rebuilt.

Coverage for additional living expenses differs from company to company. Many policies provide coverage for about 20% of the insurance on your house. Some companies will even sell you a policy that provides you with an unlimited amount of loss of use coverage, for a limited amount of time.

If you rent out part of your house, this coverage also reimburses you for the rent that you would have collected from your tenant if your home had not been destroyed.

You should talk to your agent or company to make sure you know exactly how much coverage you have and how long the coverage will be in effect. In most cases, you can increase this coverage for an additional premium.

Liability to others

This part of your policy covers you against lawsuits for bodily injury or property damage that you or family members cause to other people. It also pays for damage caused by pets. It pays for both the cost of defending you in court and for any damages a court rules you must pay.

Generally, most homeowners insurance policies provide a minimum of $100,000 worth of liability insurance, but higher amounts are available. Increasingly, it is recommended that homeowners consider purchasing at least $300,000 to $500,000 worth of coverage of liability protection.

Umbrella or Excess Liability.

You should buy enough liability insurance to protect your assets. If you own property and or have investments and savings that are worth more than the liability limits in your policy, you may consider purchasing an excess liability or umbrella policy.

Umbrella or excess liability policies provide extra coverage. They start to pay after you have used up the liability insurance in your underlying home (or auto) policy. An umbrella policy is not part of your homeowners policy. You have to purchase it separately. In addition to providing a higher dollar amount, they offer broader coverage. You are covered for libel, slander, and invasion of privacy. These things are not covered under standard homeowners or auto policies.

The cost of an umbrella policy depends on how much underlying insurance you have and the kind of risk you represent. The greater the underlying liability coverage, the cheaper the policy. This is becaue you would be the less likely to need the additional insurance. Most companies will require a minimum of $300,000 on your home and your car, if you own one.

Would you be able to remember all the possessions you've accumulated over the years if they were destroyed by a fire? Having an up-to-date home inventory will help you get your insurance claim settled faster, verify losses for your income tax return and help you purchase the correct amount of insurance.

Start by making a list of your possessions, describing each item and noting where you bought it and its make and model. Clip to your list any sales receipts, purchase contracts, and appraisals you have. For clothing, count the items you own by category -- pants, coats, shoes, for example -- making notes about those that are especially valuable. For major appliance and electronic equipment, record their serial numbers usually found on the back or bottom.

• Don't be put off!
  If you are just setting up a household, starting an inventory list can be relatively simple. If you've been living in the same house for many years, however, the task of creating a list can be daunting. Still, it's better to have an incomplete inventory than nothing at all. Start with recent purchases and then try to remember what you can about older possessions.
• Big ticket items
  Valuable items like jewelry, art work and collectibles may have increased in value since you received them. Check with your agent to make sure that you have adequate insurance for these items. They may need to be insured separately.
• Take a picture
  Besides the list, you can take pictures of rooms and important individual items. On the back of the photos, note what is shown and where you bought it or the make. Don't forget things that are in closets or drawers.
• Videotape it
  Walk through your house or apartment videotaping and describing the contents. Or do the same thing using a tape recorder.
• Use a personal computer
  Use your PC to make your inventory list. Personal finance software packages often include a homeowners room-by-room inventory program.
• Storing the list, photos and tapes
  Regardless of how you do it (written list, floppy disk, photos, videotape or audio tape), keep your inventory along with receipts in your safe deposit box or at a friend's or relative's home. That way you'll be sure to have something to give your insurance representative if your home is damaged. When you make a significant purchase, add the information to your inventory while the details are fresh in your mind.

Click here to view the home inventory form

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Burglars won't find your home an "easy mark" if they are forced to work in the light, if they have to take a lot of time breaking in, or if they can't break in without making a lot of noise.

Research shows that if it takes more than four or five minutes to break into a home, the burglar will go elsewhere.

Most insurance companies provide 2% to 15% discounts for devices that make a home safer -- dead-bolt locks, window grates, bars and smoke/fire/burglar alarms.

When improving the security of your home, don't exchange security for personal safety. Don't make your home such a fortress that you are unable to escape in case of a fire or other emergency.

Check your home for weaknesses and correct them

• Take the time to "case" your house or apartment, just as a burglar would. Where is the easiest entry? How can you make it more burglar-resistant?
• Trim trees and shrubs near doors and windows, and think carefully before installing a high, wooden fence around your back yard. High fences and shrubbery can add to your privacy, but privacy is a burglar's asset. Consider trading a little extra privacy for a bit of added security.
• Force any would-be burglar to confront a real enemy -- light. Exterior lights and motion detectors, mounted out of easy reach, can reduce the darkness a burglar finds comforting.
• Simple security devices -- nails, screws, padlocks, door and window locks, grates, bars and bolts -- can increase the amount of time it takes to break into your home.
• Invest in a burglar alarm. The most effective ones also ring at an outside service.
• Are any of your valuables -- paintings, a silver collection or a computer -- easy to see from outside? Rearranging your furnishings might be advisable if it makes your home less inviting to criminals.

Simple security steps

• Doors
  Make sure you have strong doors. Outside doors should be metal or solid hardwood, and at least 1 3/4 inches thick. Frames must be made of equally strong material, and each door must fit its frame securely. Even the most efficient lock, if it is placed in a weak door, will not keep out a determined burglar.
  A peephole or a wide-angle viewer in the door is safer for identifying visitors than a door chain.
  Sliding glass doors present a special problem because they are easy to open, but there are locks designed for them. A broomstick in the door channel can help, but cannot be depended on.
• Locks
  Deadbolt locks are best. They usually are locked with a key from the outside and a thumb turn on the inside. The cylinder (where the key is inserted) should be pick-resistant. Ask your hardware dealer for a reputable brand or buy your locks from a locksmith.
• Windows
  Key locks are available for all types of windows. Double-hung windows can be secured simply by "pinning" the upper and lower frames together with a nail, which can be removed from the inside.
  For windows at street level or on fire escapes, consider installing metal accordion gates.

Home security habits

• Establish a routine to make certain that doors and windows are locked and alarm systems are turned on.
• Avoid giving information to unidentified telephone callers and announcing your personal plans in want ads or public notices (such as giving your address when advertising items for sale).
• Notify the police if you see suspicious strangers in your area.
• Don't carry house keys on a key ring bearing your home address or leave house keys with your car in a commercial parking lot or with an attendant.
• Don't hide your keys in "secret" places outside your home -- burglars usually know where to look.

Vacation tips

• Leave blinds open in their usual position.
• Have mail and packages picked up, forwarded or held by the post office.
• Lower the sound of your telephone ringer and answering machine so they can't be heard outside.
• Arrange to have your lawn mowed in summer and your walk and driveway shoveled in winter.
• Stop newspaper deliveries.
• Ask a friend to pick-up "throw-away" newspapers and circulars.
• Use automatic timers to turn lights on and off in various parts of the house at appropriate times. Consider connecting a radio to a timer.
• Tell police and dependable neighbors when you plan to be away and join with your neighbors to keep a close watch on what's happening in your area -- working closely with them is a good way to prevent crime.

When it comes to keeping your home mold-free, a strong offense is definitely your best defense. To prevent mold, eliminate moisture from your home and be on the lookout for signs of possible growth, such as musty smells or watermarks on walls and ceilings.

Caught early, mold can usually be removed by a thorough cleaning with bleach and water. To prevent mold from re-growing, however, it is essential that the source of the moisture be eliminated and the affected area properly dried, cleaned, and if necessary, replaced. Also, remember to bag and dispose of any material with moldy residue such as rags, paper or debris.

Mold, like rot and insect infestation, is generally not covered by a homeowners insurance policy, says the I.I.I. Standard homeowners policies provide coverage for disasters that are sudden and accidental. They are not designed to cover the cost of cleaning and maintaining a home. If, however, mold is caused as a direct result of a covered peril such as a burst pipe, there could be coverage for the cost of eliminating the mold.

According to the Centers for Disease Control and Prevention (CDC), mold is everywhere. It grows year 'round and can be found both indoors and outdoors. Outdoors, mold is commonly found in shady, damp areas and in soil. Indoors, it can be found where humidity and moisture levels are high, such as in basements, kitchens, bathrooms and on ceilings and wall interiors where water from leaky pipes, roofs or windows can accumulate. While most molds pose no threat to humans, the CDC warns that certain molds can produce hay fever-like allergic symptoms. If you or your children have symptoms associated with mold, see a physician. Keep in mind, that many symptoms associated with mold exposure are common to other illnesses.

To help prevent the growth of mold in your home, the I.I.I. suggests the following:

Reduce humidity in your home

• Keep the humidity level in your home between 30% to 60% by using air conditioners or dehumidifiers.
• Put exhaust fans in kitchens and bathrooms.
• Don't install carpets in damp areas such as basements or bathrooms.
• Don't let water accumulate under house plants.

Use mold-reducing products

• Clean bathrooms with bleach and other mold killing products.
• Add mold inhibitors to paints before application.

Keep your home and belongings dry

• Inspect hoses, pipes and fittings - Consider replacing hoses to major appliances like washer and dishwasher every five years. A typical water hose costs $5-$10
• Refrigerator ice maker and water dispenser
• Water heater
• Washer
• Dishwashers
• Kitchen and bathroom sinks
• Bathroom toilets
• Keep gutters clean of leaves and other debris.
• Maintain your roof to prevent water from seeping into your home.

Be careful after a flood or other water damage

• Properly dry or remove soaked carpets, padding and upholstery within 24-48 hours after a flood to prevent mold growth. Anything that can't be properly dried should be discarded.
• Remove standing water as quickly as possible. Standing water is a breeding ground for microorganisms, which can become airborne and inhaled.
• Wash and disinfect all areas that have been flooded. This includes walls, floors, closets, shelves, as well as heating and air-conditioning systems.

If you have any questions regarding mold and homeowners insurance, contact your agent or company representative. They can provide information on how to maintain your home and may also be able to provide the name of an expert in mold-remediation. You can get more information on mold by accessing the CDC at http://www.cdc.gov

A wood burning fireplace or stove presents not only comfort but certain responsibilities. Many homes in America are returning to the use of wood burning fireplaces and stoves. Homeowners need to be aware, however, that there are still many safety and maintenance issues involved in wood burning.

Wood burning facts

• The best wood to use is cordwood that has been seasoned and protected from the weather for six months to one year. This wood ignites faster and is 25% more efficient. Green wood has too high of a moisture content for satisfactory use.
• Wood split before storing to season dries in less time and burns more evenly.
• Smaller pieces of wood burn cleaner because they have more surface area exposed to the flame.

Principal DO's and DON'Ts.

• DO make sure there is enough clearance between the stove and combustible materials,including floors, walls, and ceilings.
• DO make sure that your stove is made of sturdy, suitable material such as cast iron or steel.
• DO place the stove on a noncombustible, fire-resistant base.
• DO burn only dry, well-seasoned wood.
• DO place a screen in front of the fireplace to prevent embers or sparks from escaping onto the rug or furniture.
• DO have a pair of heat-proof gloves and the right fireplace implements ready in case you have to pick-up a red hot ember that has fallen out of the fireplace.
• DO keep the fireplace damper fully open when the fireplace is in use.
• DO use a grate to hold logs in place to prevent them from rolling out.
• DO dispose of ashes by soaking them in water and placing them in a closed metal container outside of the dwelling.
• DO have a mason or other competent person inspect the chimney.
• DO make sure working smoke alarms are installed on each floor of your home.
• DO keep the chimneys clear of tree limbs and debris.

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• DON'T store combustible items near your stove or fireplace. Most items will absorb radiant heat and will ignite easily.
• DON'T use your wood burning stove for cooking.
• DON'T overload the fireplace.
• DON'T start a stove fire with flammable fluids, such as gasoline.
• DON'T let a wood fire burn unattended or overnight.
• DON'T leave your children unattended near your stove or fireplace.
• DON'T burn coal. Coal burns hotter than wood and may be a fire hazard.
• DON'T burn pressure treated wood, painted wood, drift wood, particle board, plywood, plastic, magazines, colored paper, gift wrap, cardboard, or garbage.
• DON'T use artificial logs that are created for fireplaces only.

Maintenance

Before heating season, have your chimney checked and cleaned by a professional Chimney Sweep. This should be done more frequently if your fireplace or stove is used on a regular basis. A professional will not only clean out soot and creosote buildup, but he or she may also check for cracks or other problems in your chimney. Checking your chimney on your own may result in damage to the chimney lining.

Wood Stove Information

Steps can be taken to improve the efficiency of your wood stove by as much as 50%:

• Look for and purchase stoves listed by Underwriters Laboratories (UL) or other recognized independent testing laboratories. Certified stoves are more efficient and also reduce smoke emissions by as much as 90%.
• The stove needs to be the right size for its location and use. Stoves that are smaller usually burn cleaner and use less fuel. If a stove is too large for its area, you may have a fire hazard.
• Make sure the stove is properly installed. Local building codes must always be followed.
• National Fire Protection Association (NFPA) standards call for a 36 inch clearance from walls, partitions, and all combustible items, including furniture.
• Stoves that have less than two inches of ventilated open space beneath the unit should never be installed on combustible floors or have any combustible material under them unless the material is permitted.
• Floor protection should extend out 6-12 inches from the sides and back of the stove and 18 inches from the front where the stove is loaded.
• The chimney should extend at least 3 feet above the highest point where it passes through the roof and 2 feet above any portion of the building within 10 horizontal feet of the chimney.
• Cover the chimney outlet with an approved mesh screen spark arrester.
• Never physically alter any fireplace or chimney parts.
• If you install the wood stove your self, have your work inspected a by local fire or building inspector.
• 4. Install a stack thermometer on the stove flue. The optimum range for most efficiency and least pollution is 300 to 400 degrees Fahrenheit.