Your home is more than just a structure; it’s a place where memories are made and dreams are nurtured. But in a world filled with the unexpected, protecting this cherished asset with homeowners insurance is essential. 

What Are the Three Types of Homeowners Insurance? 

Homeowners insurance policies come in various forms, and one of the key distinctions among them is how they handle the valuation of your property and possessions in the event of a covered loss. The following are three primary types of homeowners insurance policies: 

1. Actual cash value policies provide coverage for your home and belongings based on their current market value at the time of the loss, taking into account depreciation. This type of coverage offers compensation for the damaged or stolen property after factoring in depreciation. This means you’ll get less than the original purchase price, as it accounts for wear and tear over time.
2. Replacement cost policies cover your home and personal belongings without considering depreciation. They reimburse you for replacing or repairing items with new ones of similar quality and kind. With this policy, you’ll receive compensation to replace your damaged or stolen property with new items without accounting for depreciation. 
3. Extended replacement cost/value policies provide coverage that goes beyond the specified coverage limit on your policy. It may pay for rebuilding or replacing your home even if the cost exceeds the policy’s limit. This additional coverage is typically a percentage above the policy limit, providing a safety net in case construction costs surge unexpectedly due to factors like a natural disaster. 

What Does Homeowners Insurance Cover? 

Homeowners insurance policies typically include the following coverage: 

• Personal property coverage 
• Dwelling coverage 
• Other structures coverage 
• Liability coverage 
• Additional living expenses 

 
It’s important to note that coverage limits, deductibles and specific perils covered vary depending on the insurance policy and the insurance provider. 
 

How Much Is Homeowners Insurance in Missouri?  

The cost of homeowners insurance in Missouri can vary significantly based on several factors, including the location of your home, the value of your property, the level of coverage you need, and the insurance company you choose. Other variables, such as your home’s age, construction type and location, can also impact the premium you pay. Contact The Insurancenter for an accurate quote for homeowners insurance in Missouri.