[retiredguy123]

Replacement cost coverage will pay to replace damaged items with new, but only up to the total policy limit. You want the policy limit to be at least as high as the market value of your house, less the land value. So, if your house is totally destroyed, you may not be able to rebuild it, but you will receive the market value, so you can buy another house of equal value. Most houses cannot be rebuilt for their current market value, and it is probably not worth the extra cost to insure the house for that amount. Unless, you are absolutely in love with the lot and would want to rebuild a new house on that lot.