On Mon, 19 Sep 2011 19:22:12 +0100, Orchid XP v8 wrote:

>>>>> Isn't that just the cost to buy another already-existing house of a
>>>>> similar type?
>>>>
>>>> Not necessarily. Replacement cost sometimes does include construction
>>>> (ie, actual replacement).
>>>
>>> I wonder if they ever include relocation costs...
>>
>> Generally you have to actually rebuild the house in order to get the
>> replacement costs paid. This prevents people from torching the place to
>> get the money.
>>
>> Often there will be payment of temporary housing costs while the
>> original house is rebuilt.
> 
> Is this one of those things that varies by country? 

It tends to vary by policy, depending on what the homeowner is willing to 
pay for (or is required to pay for).

> Also, I wonder if my
> house is actually insured at all...

Is there still a mortgage due on it?  If it is, the bank most likely 
requires that there be some type of homeowner's policy on it in order to 
protect their investment.

Jim

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