There are different types of policies which provide protection to your home. There are those that cover basic perils, but do not offer, for example, theft or Extended Replacement Cost for the dwelling. Extended Replacement Cost is an additional amount of coverage, usually 125% or 150% of the dwelling amount. It acts as a “buffer” in the event you need more than the dwelling amount specified on the policy at the time of a loss. With this, you will not find yourself underinsured.
It is important to review your policy annually to ensure you are properly covered. Many homeowners are remodeling these days and this is the perfect time to advise your agent of any upgrades to your home. 
If it is an owner occupied residence, you want to make sure that you have a Homeowners Package with all of the bells and whistles, not just a Dwelling Fire policy. If you are a first time buyer, you need to be aware of the various differences between these two types of policies. Even if you have had a homeowner’s policy for a long time, and have made no changes to the home, a policy review is still a wise thing to do. Your homeowner’s policy may be outdated.
Insurance companies come out with new products all the time. Some of the new products include Identity Theft, Business-use laptops on/off the premises, increased limits for Electronic Data Processing Equipment, and higher coverage for business property on the residence premises. In response to the growing trend of flexible workforces and the rapid increase in the number of home businesses, these new policies provide enhanced coverage for those with home offices or home-based businesses. These are just some of the things to be aware of when purchasing a policy.
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