The policyholder who opts for less than the 80 percent coverage takes a potentially large risk in the event the home is totally destroyed since he is liable for whatever portion of the home's full replacement cost is uninsured. This arrangement provides the homeowner who purchases less than 100 percent coverage, but more than 80 percent coverage, with full replacement protection in the event of a total loss regardless of policy limits. In many cases, the cost of a 100 percent replacement cost policy can be reduced if the homeowner is willing to assume responsibility for minor losses through a deductible clause. The insurer pays only for that portion of the loss that exceeds the deductible. Generally, trees and plants surrounding the house are insured up to five percent of the level of coverage on the structure.
Additional insurance is almost always available at an extra cost.
However, do not expect insurance to replace a 200 year-old oak tree with a duplicate, since that is impossible. Normally, personal property is insured for up to 50 percent of the coverage on the house structure. However, there are actual dollar limits on such items on jewelry, silverware, stamps and coin collections, and furs. These policies will independently insure specific items against theft, damage of any other type of loss in the home or away from home. Most expensive items must be professionally appraised before they will be insured under a floater.