Your settlement depends on what type of policy you have. A replacement cost policy pays for the amount needed to replace a damaged item with a similar one without deducting for depreciation if you replace it. An actual cash value policy pays you the amount needed to replace the item minus depreciation.
Some General Casualty homeowners insurance programs offer replacement cost coverage that pays more than the limit of your policy to rebuild your home, such as additional costs caused by increases in building costs.
Keep in mind both actual value and replacement cost pay to return your home or belongings to their state before the disaster. If you upgrade your floor plan or buy a car or furniture nicer than those destroyed, you are responsible for the difference in price.
Note: This information serves as a general overview of the claims process and refers to the majority of personal insurance claims. Because each claim situation is unique, the information provided may not apply to your specific situation. If you have questions about a claim, please contact your independent insurance agent or General Casualty.