What happens when your house burns down with fire replacement value insurance, but you'd like to build a house that is a little bigger than the one that got burned down. How is this handled?
What about personal property? Let's say you have it insured for $100K. Do you get one big check and start buying furniture or you buy household items first and give them receipts for reimbursements? We are not a wealthy family and most of the things we have we acquired when it was on sale.
Is there a time limit for purchasing new items? It took us years to collect everything at the price we could afford. How much time would we have to use that 100K? What happens when it's not totally used? Recently my brother had a bad car accident and there were a lot of problems with insurance and it seemed that his coverage was insufficient. A house is a much bigger investment and I'd rather not make a mistake here. I don't want to contact my insurance agent since he may be only interested in selling me more coverage whether I need it or not.
Last question: Very often when your house burns down, your neighbors' homes get some damage, as well. How much coverage do I need so that I'm protected in case the fire spreads? I don't want to be sued and lose my house in a fire and the rest in court.