What type of coverage does HO-804 apply to the dwelling?

The HO-804 form provides Replacement Cost Coverage for the dwelling. This means that in the event of a covered loss, the insurer will pay the cost to repair or replace the damaged property with materials of similar kind and quality, without deducting for depreciation. This approach ensures that homeowners can restore their property to its original condition, which supports the principle of recovery in property insurance—providing a path for individuals or families to return to their pre-loss status.

In contrast to Actual Cash Value coverage, which accounts for depreciation, Replacement Cost Coverage focuses solely on the cost to replace the item or property without factoring in its depreciation. Therefore, this type of coverage is particularly favorable for policyholders because it offers a more comprehensive layer of protection, ensuring they can adequately address repairs without financial loss attributed to age or wear and tear on the original structure.