There are different types of Home insurance ranging from Actual Cash Value to Guaranteed or Extended Replacement Cost.

Actual Cash Value: if you are the holder of this policy, you would get the actual cash value of your home or belongings upon making a claim. There is one catch - The insurance company will calculate depreciation on your goods if you own this policy.

Replacement Cost: owning this policy insures that you when you make a claim, you will collect the full value of your losses. The home insurance company will pay the cost of rebuilding, repairing, or replacing without any deductions for possible depreciation.