Your dwelling is your house itself. The term “replacement cost” is defined or explained in the policy. Simply stated, it means the cost to replace the property on the same premises with another property of comparable material and quality used for the same purpose. This applies unless the limit of insurance or the cost actually spent to repair or replace the damaged property is less. The dollar value is the cost to rebuild your house or the replacement cost as calculated by specialized software, not the money you could get if you sell it or what you owe on your mortgage. These amounts are most often different.
Example: Several years ago, your house might have a sales value of $200,000 and now it might be $300,000. The mortgage value falls as it is repaid. So you might still owe $136,500 on your mortgage. The cost to replace the house may have been $225,000, when you bought it and will only change by inflationary factors and supply and demand for the materials.
If the dwelling is insured at actual cash value, this generally means: the cost to replace with new property of like kind and quality, less depreciation. Please refer to your policy.
This is for other structures you have on your property like: a detached garage, guest house, fence, tennis court, or storage building.
There is usually a limited level of coverage for the items below, but they can be increased.