Homeowners insurance is an insurance policy that covers losses and damages to your home and assets in the house.
There are different types of insurance coverages in the US, and depending on which one you choose, it will change the amount you might receive from a claim.
With actual cash value coverage, you’d be covered for the cost (how much you paid) of your home and belonging after accounting for depreciation (how much the house and belongings are currently worth).
Replacement value policies are the same as actual cash value except it does not take depreciation into account.
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.