At its core, homeowners' insurance is an insurance policy that covers losses and damages to your home and assets in the house.
A typical homeowners policy typical covers: – Damages to the exterior of a home – Damages to the interior of a home – Injuries that occur on the property
With actual cash value coverage, you’d be covered for the cost of your home and belonging after accounting for depreciation.
Replacement value policies are the same as actual cash value except it does not take depreciation into account. You would be able to receive the amount you originally paid.
This type of coverage will allow you to receive the total cost of repairing or rebuilding your home, even if it’s more than your policy limit.