Also, is it true there are two types of insurance – one based on value (you get money) another based no re-construction cost (they build a new house for you)?
THANKS.
it’s regarding a house.

• Proceeds of a life insurance policy or funds held in a retirement account for which you have named a beneficiary. This property will pass directly to the named beneficiary upon your death regardless of any provisions in your will leaving your estate to someone else.  
• Property you own in joint tenancy with right of survivorship, such as real estate. Your share of the property will automatically belong to the surviving co-owner at your death.
• Funds held in a payable-on-death (POD) or transfer-on-death (TOD) bank account will be transferred directly to the beneficiary you have named upon your death. 
• Real estate for which a transfer on death deed (TODD) has been filed. This property will pass to the beneficiary named on the deed.
• Property that you have transferred to a living trust will be governed by the terms of that trust and not your will. 

A will also does not address what happens if you become incapacitated during your lifetime. A will does not give anyone authority to act on your behalf when you are alive. The proper place to appoint a person to handle your financial affairs is in a power of attorney. A health care directive is the appropriate document in which to name a trusted person to make health care decisions for you as well as to spell out your wishes regarding things such as life sustaining treatment, burial or cremation of your body, organ donation, and funeral or memorial services. 
 
If you expect your estate to owe state or federal estate taxes, you may want to take steps now to reduce the tax liability. A will does not help you avoid taxes. There are many kinds of trusts that can be utilized in tax planning. In addition, a will does not avoid probate. 
 
Although a will can do many things and should be considered an essential component to your estate plan, it cannot cover everything. 
 

Unfortunately, a number of insurers are chasing price points in response to consumer demands, compounding the problem. This is not least where there are already individual insurance companies already targeting the budget section of insurance markets.

The problem of course being that the danger increasingly becomes one of consumers buying into home insurance on price alone, without properly checking that they have adequate cover for their individual circumstances.

Additionally, many consumers simply do not realise, or care to consider, that cheaper insurance tends to come at the cost of support. Which is fine so long as everything is running smoothly, but causes stress when a claim needs to be filed.

Ironically, as A1 brokers recently found when comparing home insurance reviews, some of the big name insurance companies are still able to compete on price, even against traditional budget insurers. The caveat being that many of these bigger insurers have well-established claims procedures and the support structure to go with them.

Of course, while it benefits the consumer to know that insurance markets are so competitive, the big concern is to ensure that cover is more than adequate.

What many people do not realise is that there are a number of exclusions that can apply for any individual home insurance policy – whether for contents, buildings, or both – which may not come up on a direct price comparison.

Common exclusions can be based on location, building age, and even the status of the person looking for insurance.

Even where cover is exactly what the consumer needs, they still need to be careful they go with an insurance company with proper support in the event of a claim. As the house insurance blog recently commented, “budget providers come under particular fire for not providing enough support or clearing claims faster.”

In other words, there are two key lessons for consumers:

1. Ensure you are properly covered

2. Ensure you are covered by a reputable and reliable company.

There are plenty of review websites out there, and searching for “review” of a particular home insurance policy or insurer should help identify some of the better insurance options out there.

Either way, the key lesson is that budget home insurance may not always be the cheapest in the long run, and that in many instances, as with all consumer products, “you get what you pay for”.

As far as giving them a large sum for them to take instead…. they can have 0 & kiss my ass
& we had only lived there for 2 weeks. we were still in the process of moving stuff in. lucky that stuff was saved. but we just didnt plan on getting renters insur right away. we were planning on getting it that next week after we got our paychecks.