Large-scale sequencing projects are widening the gap between the known protein universe and the fraction for which structural information has been experimentally obtained. Through the application of homology (comparative) modeling and more general structure prediction techniques, this gap can, however, be narrowed, providing indirect structural information for a considerable number of proteins. Moreover, the estimated number of existing protein folds seems to be limited and many of these yet unknown folds should be discovered by dedicated large-scale structural genomics projects. Within this perspective, homology (comparative) modeling will gain in importance, as will the use of models derived by this technique. Here we discuss how well a sequence alignment, the most common starting point for generating a model, reflects the structural conservation between homologous proteins and we show that sequence information is able to direct construction of acceptable models as far as the structural core is concerned. We also show here that the regions surrounding insertions and deletions are much less conserved than the core and discuss the implications of this observation for loop modeling.