All homeowners insurance policies are not alike. They pay varying amounts of coverage
to replace your home and personal belongings.
The 3 most common levels of coverage are:
- Actual Cash Value
Your house or property is covered for the depreciated amount of the actual value at the
time of loss.
- Extended Replacement Cost
Your house or property is covered up to a specified amount or cap. For example, assume the
dwelling coverage in a policy is $100,000 and it has a $150,000 cap. If there were a fire
and it was determined at the time of loss that the home needed to be rebuilt, then extended
replacement cost coverage might pay up to $150,000 of rebuilding costs.