With a standard homeowners insurance policy, your dwelling is insured for a specific amount, which is listed on your policy’s declaration page. Here’s a key difference between standard homeowners and High- Value homeowners. High Value policies often go above and beyond a standard policy by offering extended replacement cost coverage for your dwelling and other structures. This means you will get reimbursed for house repairs that are above the amount listed on the policy. That’s important if local material and building costs rise after a disaster such as a tornado.
If your home has been destroyed, you may even see a “cash out” option in a high-value home insurance policy. This will enable you to take the insurance payout and build your home elsewhere.
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