Your drawing is correct. I don't think 10 Uf is necessary. I go find mine or go build one right now and let you know. I am curious about my home too.
Yes that will work. I found mine has a 1 uf capacitor and 560K 1/2 watt or greater series resistor. None of these parts are special or critical in value. When connected to the power line I measure 0.5 volts AC. That is low enough for the DC function to decipher the voltage on the line. The series resistor size will reduce the measurement by being a voltage divider to the meter. However the meter is usually 10 meg ohms (you should check the specs or with a known battery as the source). If the series resistor is 1 megohm the meter will read 10% low, 560 K will read 5% low. This is a simple voltage divider for the DC part. It is for the AC part if you calculate the reactance of the capacitor.
When you test the set-up see that your meter measures some small AC voltage. then turn it to DC and see what you get from time to time. My house has no DC, not even a few millivolts. To test I took a 100 watt light bulb and put a half wave rectifier in series with it. That combination put 0.22 DC volts on the line. It is always good to conduct an experiment to see that something reasonable happens when you load the system.
I was telling Ben that when I put 0.2 volts on the line all my neighbors on the same pole transformer got that too minus some losses from house to house, but I bet I could plug the lamp in my house and measure it in theirs.