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HOAIt means our policy is based on actual value rather than replacement cost.

It means that the insurance company is not guaranteeing you the replacement of your home if it burns down. For example, your insurance policy limit is $200,000, but the cost of replacing your home is $210,000, if you had a replacement policy, the insurance would pay for the replacement of your home despite the fact that your insurance limit is only $200,000. However, the insured value at the time of the loss is usually required to be at least 80% of the replacement cost before your policy is covered on a replacement cost basis.

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Q: You have insurance on your home but no replacement insurance What does this mean?
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Related questions

Is home replacement insurance feasible?

Yes, every home insurance company out there already sells it

Does home owners insurance cover an individual if they are helping someone and get hurt in the process?

No, homeowners insurance is not a replacement for health insurance.

Does your insurance company have to pay the policy limit for a total loss if you have replacement?

No, If you have a replacement valuation Home Insurance Policy then the company will pay the "replacement cost" The cost of replacement may or may not reach your policy limits depending on the loss.

Do you have to insure your home for more than the mortgage balance?

To the insurance company, your mortgage balance has no impact on how much insurance coverage you need for your home. Homeowners insurance is based on the replacement/reconstruction cost of your home.

What is boiler insurance and what exactly does it cover?

Boiler insurance isn't usually covered on standard home insurance. Boiler insurance covers repairs, parts, and possible replacement of your home boiler. Boilers can be costly to repair that is why the insurance is necessary.

Does home owner's insurance pay for roof replacement?

yes, we are currently renting and our landlord's insurance paid for ours to be fixed

What does seguro de casa mean in spanish?

Home insurance. Insurance on your home.

Does ho3 homeowners insurance mean dwelling replacement cost?

no you need a separate endorsement - called Replacement Cost Coverage

Can you own a home in one state with replacement insurance coverage and have the same coverage on a home in another state?

You should have replacement coverage on both homes not the same coverage on both homes with the RC generated from only one home.

What do Homeowner's Insurance mean?

Homeowners Insurance means insurance covering a home that the owner lives in.

Does homeowners insurance cover Clean up after furnace malfuntion?

I have a mobile home and the furnace caught on fire and is now damaged does my homeowners insurance cover this as a replacement

Will your homeowner insurance pay for your house and build you a new one?

If your homeowners Insurance Policy has "Replacement Valuation", It will pay the cost to rebuild your home. If you bought an ACV policy, then it will only pay you the current value of your home.