Levels of Homeowners Insurance Coverage

Once you choose what type of homeowners insurance you would like, HO-2, HO-3 or other, you'll also have another decision to make. There are different levels of homeowners insurance coverage to choose from. They include:

1. Replacement Cost: Your insurer will give you the replacement cost of the item which is what you paid for your home or personal property without accounting for depreciation.
2. Extended Replacement Cost: Pays for the cost of replacing your home even if it exceeds your policy's original coverage limit by 20 or 25 percent.
3. Actual Cash Value: Replacement of belongs at their current market cost or value which may be less than you originally paid due to depreciation.

Homeowners insurance quotes are easy to obtain with InsuranceBureau.com's help. Our form gives you access to a nationwide database of homeowners insurance companies that can provide you with quotes in no time.

Sources

1. Are there different types of policies? Retrieved May 12, 2008, from http://www.iii.org/individuals/homei/hbasics/arethere/