: This is the highest level of coverage. It covers both your home and belongings against all risks (except exclusions), offering broader protection than an HO-3.
: Pays what the item was worth at the time of the loss , factoring in depreciation. For example, if a 10-year-old roof is destroyed, ACV only pays for its current, aged value. what to look for when buying home insurance
: The most common choice. It covers your home structure against all risks unless specifically excluded (like floods or earthquakes), but only covers your belongings for specific "named perils" like fire or theft. : This is the highest level of coverage
: Most insurers require you to insure your home for at least 80% of its total replacement cost to avoid penalties on partial claims. What is the 80% rule for home insurance? - Liberty Mutual For example, if a 10-year-old roof is destroyed,
This is often the difference between being able to rebuild your life or facing a massive financial gap.
: Pays to replace your home or items with new ones at today's prices.