Replace Your Things
If your possessions are destroyed, don't fret -- insurance will reimburse you for the value of your property including appliances, furniture, clothing and other possessions. What's cool is those things don't have to be in the house. They can be off site in a self-storage locker, or even with your kid at school.
Many policies give you a choice on how to insure your belongings. You can get actual cash value or replacement cost coverage. What's the difference? Most things depreciate over time. Actual cash value will allow you to recoup the amount you expect to get if you sold the items, minus the depreciation. Replacement cost coverage allows you to replace your insured personal property for what it would cost to buy them new. Replacement cost coverage is more expensive than actual cash value coverage [source: Allstate].
Keep in mind that most companies provide personal property coverage up to 70 percent of the amount of insurance you have on the structure. So, if you're house is insured for $100,000, you should be insured for up to $70,000 worth of personal property coverage [source: CBS Detroit].