In today's Wall Street Journal ("Housing Boom's Dark Side"), this article highlites the danger of having less than full replacement value on homes that have experienced increases in home values over the past several years strong real estate market.

In light of this concern, the WSJ suggests the following:

Directly ask your insurance agent "Do I have enough insurance to rebuild my home as it is, and replace my personal possessions?"

As an independent check, the article also suggests that for $7.95 you get an estimate for the replacement cost of your home from the replacement cost calculator on www.accucoverage.com. Take the estimate and compare it to the coverage limits in your policy.