Probably the main thing to consider when determining homeowners coverages and limits is the cost of rebuilding your home after catastrophic damage. After all, most of us purchase home insurance for the financial protection it provides for our abodes if the worst happens.
Consider all the components that make up your home's structure — from flooring to framework, countertops to cabinetry, and rooftops to plumbing (and it doesn't stop there). All of these are essential for making your house even livable, let alone making it a home for you and your family.
The amount of money it would take to rebuild your home should be largely taken into account when choosing how much coverage is right for your homeowners insurance policy. And don't forget inflation — if you've added up all these expenses before but it's been a decade since, you might want to check out current market prices.