Coverage, Limits & Deductibles

Aim for a defensible estimate of the cost to rebuild the home at current local labor and material prices, rather than its market price or mortgage balance.

Replacement cost coverage generally pays the covered cost to repair or replace property without deducting depreciation, subject to limits and conditions.

Actual cash value generally reflects replacement cost minus depreciation, although definitions can vary by policy and jurisdiction.

An extended replacement-cost endorsement can provide additional dwelling coverage above the stated limit, up to the percentage or amount specified.

Some policies offer guaranteed replacement cost subject to strict eligibility, reporting, and rebuilding conditions; availability varies by insurer.

The deductible is the portion of a covered loss you pay before the insurer contributes. Separate wind, hurricane, or named-storm deductibles may apply.

A higher deductible can reduce premium but increases out-of-pocket costs after a claim. Choose an amount you could comfortably pay.

Personal property coverage protects eligible belongings such as furniture, clothing, and electronics against covered causes of loss, within policy limits.

This coverage can pay eligible extra living costs when a covered loss makes your home uninhabitable, subject to time and dollar limits.

Personal liability coverage may help with covered claims alleging bodily injury or property damage for which an insured is legally responsible.