Policy Definitions

• A replacement cost policy will pay the necessary costs to restore your home to its original condition using the same type and quality materials. In a total loss situation, you receive the value of the home prior to the damage. Repair cost policies will pay to fix or rebuild your home to a condition close to its original state. The replacement will take place using materials that are more modern than originally used.
  
  

Required Property Values

• Insurance companies can deny you coverage if your property is not valued at a minimum amount. For replacement cost policies as of 2008, your insured property must be valued at $35,000 or higher. The insured value of your home must be at least $15,000 for a repair cost policy.
  
  

Fire Protection Rating

• The law allows insurance companies to rate the area your home is located in based on the available fire protection. This rating will have an impact on the cost of your insurance.