Types of insurance coverages
As your claim proceeds, a payment or payments will be issued based on your coverages.
The insurance coverage you purchased will determine if you receive the full replacement cost to rebuild your home and replace its contents, or if the amount you receive will be based on the condition of the property at the time of loss.
You may also have extended replacement costs coverage that protects you in the event that a surge in demand, often following a disaster, results in an increase in costs to rebuild your home.
Many policies also have coverage for building code upgrades to ensure homes are built in compliance with newer building code standards.
A typical homeowners policy has several separate coverages, so you might receive different checks for different coverages. One common type of homeowners insurance policy is structured as follows: