What it is: Replacement cost covers the full cost to replace property; ACV accounts for depreciation.
Why it’s needed: Determines claim payouts and affects premiums.
Typical premium difference: Replacement cost is 5%–15% higher than ACV.
Example: $300,000 home → ACV premium ~$1,800/year, replacement cost ~$2,070/year (15% higher).

What it is: The out-of-pocket amount paid before insurance coverage applies.
Why it’s needed: Reduces premiums and discourages small claims.
Typical premium effect: $500–$2,000 deductible can reduce premiums 10%–30%.
Example: $1,000 deductible on $300,000 home → ~$1,800/year vs $500 deductible ~$2,100/year.

What it is: Covers temporary living costs if a home becomes uninhabitable due to a covered loss.
Why it’s needed: Maintains lifestyle during repairs.
Typical premium: Usually included in homeowners; ~5%–15% of dwelling coverage.
Example: $300,000 home → ALE coverage included ~$150/year (~0.05%).

What it is: Covers the cost of rebuilding to current building codes after a loss.
Why it’s needed: Protects against additional costs from updated building requirements.
Typical premium: 5%–15% of building coverage.
Example: $300,000 home → ~$1,500–$4,500/year if added.

What it is: Covers the cost to remove debris after a covered loss.
Why it’s needed: Ensures properties can be repaired or rebuilt safely.
Typical premium: Often included; 1%–5% of coverage value if added separately.
Example: $300,000 home → ~$1,500/year (~0.5%).

What it is: Covers damage from backed-up sewers or drains.
Why it’s needed: Standard HO policies often exclude water backup.
Typical premium: $50–$250/year depending on coverage limit.
Example: $50,000 coverage → ~$150/year (~0.3%).

What it is: Scheduled property lists specific high-value items; unscheduled covers general personal property.
Why it’s needed: Scheduled items ensure adequate coverage beyond standard policy limits.
Typical premium: 1%–2% of item value annually.
Example: $50,000 jewelry → $500–$1,000/year.