Meeting an 80 percent replacement-cost requirement in your homeowner's insurance enables you to avoid incomplete coverage on small losses to your dwelling.

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Meeting an 80 percent replacement-cost requirement in your homeowner's insurance means that you have insured your home for at least 80 percent of its replacement value. This ensures that in the event of a covered loss, you have enough insurance coverage to cover the full cost of rebuilding or repairing your home. This also helps you avoid incomplete coverage on small losses to your dwelling, as you have enough insurance to cover the cost of repairs or rebuilding, rather than having to pay out of pocket for any uncovered expenses.

Meeting an 80 Percent Replacement-Cost Requirement in Your Homeowner's Insurance