If you are just going through a house purchase or have recently moved, your valuation report is a good estimation for the amount of cover you need. Be careful not to confuse its market value with its rebuild cost, as there could be a big difference between them. A home policy should cover funds to rebuild your home in the event of it being totally destroyed or damaged to the point that complete rebuilding is necessary. This includes the amount to actually rebuild the house and also any demolition work, removal of debris and the Surveyors/Architects fees.