Author: Home & Dime Editorial Team

Replacement cost pays to replace damaged property with new equivalents; actual cash value pays the depreciated amount. Replacement cost costs a little more but pays far more at claim time.

By the Home & Dime Editorial Team · Updated 2026

Actual cash value (ACV)

Replacement cost minus depreciation — you get the item’s used value.

Replacement cost value (RCV)

Pays to buy new, with no depreciation deducted.

Frequently asked questions

Which should I choose?

Replacement cost — the higher payout is usually worth the small premium difference.

Which is cheaper?

ACV premiums are lower, but payouts are much smaller.

Related guides

• Insurance glossary
• How insurance deductibles work

Sources: Insurance Information Institute (iii.org); Consumer Financial Protection Bureau; FEMA; state Departments of Insurance. General information, not insurance advice.

Roof-mounted solar panels are usually covered under your dwelling coverage against covered perils, but you may need to raise your coverage limit to reflect their value.

By the Home & Dime Editorial Team · Updated 2026

Covered

• Rooftop panels damaged by wind, hail, fire.

Check

• Whether ground-mounted panels need ‘other structures’ coverage.
• That your dwelling limit reflects the added value.

Frequently asked questions

Do I need to tell my insurer?

Yes — notify them and confirm your limit covers the panels.

Are leased panels covered?

Leased systems are often the leasing company’s responsibility.

Related guides

• What does homeowners insurance cover?

Sources: Insurance Information Institute (iii.org); Consumer Financial Protection Bureau; FEMA; state Departments of Insurance. General information, not insurance advice.

Yes — a pool is usually covered as an ‘other structure,’ and your liability coverage protects you if a guest is injured. But pools raise your liability risk.

By the Home & Dime Editorial Team · Updated 2026

Covered

• Pool damage from a covered peril.
• Liability if a guest is hurt.

Consider

• Higher liability limits or an umbrella policy — pools are an ‘attractive nuisance.’
• Safety features may be required.

Frequently asked questions

Does it raise my premium?

Often yes — pools increase liability risk.

Should I raise liability limits?

Yes — many pool owners add umbrella coverage.

Related guides

• What does homeowners insurance cover?

Sources: Insurance Information Institute (iii.org); Consumer Financial Protection Bureau; FEMA; state Departments of Insurance. General information, not insurance advice.

Homeowners insurance covers hurricane wind damage (with a hurricane deductible), but not the flooding and storm surge — those need separate flood insurance.

By the Home & Dime Editorial Team · Updated 2026

Covered

• Wind damage to roof, walls, windows.
• Wind-driven rain through wind-created openings.

Not covered

• Storm surge and flooding (needs flood insurance).

Frequently asked questions

Is storm surge covered?

No — that’s flooding; you need flood insurance.

What’s a hurricane deductible?

A separate, percentage-based deductible for named-storm damage.

Related guides

• What does flood insurance cover?
• Does homeowners insurance cover wind damage?

Sources: Insurance Information Institute (iii.org); Consumer Financial Protection Bureau; FEMA; state Departments of Insurance. General information, not insurance advice.

Yes — wind is a covered peril on standard policies, though high-wind states may apply a separate windstorm or hurricane deductible.

By the Home & Dime Editorial Team · Updated 2026

Covered

• Roof, siding, and window wind damage.
• Interior damage from wind-driven rain through a breach.

Watch for

• Separate wind/hurricane deductibles in coastal states.
• Some coastal areas exclude wind (needs a separate policy).

Frequently asked questions

Is there a special deductible?

In high-wind states, yes — a percentage-based wind deductible.

Is hurricane wind covered?

Usually yes, subject to a hurricane deductible.

Related guides

• Does homeowners insurance cover hurricane damage?

Sources: Insurance Information Institute (iii.org); Consumer Financial Protection Bureau; FEMA; state Departments of Insurance. General information, not insurance advice.

Yes — lightning is a covered peril. Homeowners insurance pays for fire from a strike, and for electronics and systems fried by the resulting power surge.

By the Home & Dime Editorial Team · Updated 2026

Covered

• Fire caused by a strike.
• Fried electronics and appliances.
• Damaged HVAC and electrical systems.

Frequently asked questions

Are electronics covered?

Yes, if a lightning surge damaged them, minus your deductible.

Is a power-company surge covered?

Often excluded — strikes are covered, grid surges may not be.

Related guides

• Does homeowners insurance cover HVAC?

Sources: Insurance Information Institute (iii.org); Consumer Financial Protection Bureau; FEMA; state Departments of Insurance. General information, not insurance advice.

Yes — smoke damage is covered when it results from a covered peril like a house fire or a nearby wildfire, including cleaning and odor removal.

By the Home & Dime Editorial Team · Updated 2026

Covered

• Smoke from a house fire.
• Wildfire smoke damage to your home.
• Smoke from a neighbor’s fire.

Limited or excluded

• Cigarette smoke and gradual buildup.

Frequently asked questions

Is wildfire smoke covered?

Yes, when it damages your home.

Cigarette smoke?

Gradual smoke damage from smoking usually isn’t covered.

Related guides

• Does homeowners insurance cover fire damage?

Sources: Insurance Information Institute (iii.org); Consumer Financial Protection Bureau; FEMA; state Departments of Insurance. General information, not insurance advice.

Yes — fire is a covered peril on every standard homeowners policy. It pays to repair or rebuild your home and replace belongings damaged by fire, plus living costs while you’re displaced.

By the Home & Dime Editorial Team · Updated 2026

What’s covered

• Structural fire damage.
• Damaged belongings.
• Smoke damage.
• Living expenses if displaced.

Rare exclusions

• Arson by the homeowner.
• Vacant-home fires beyond a set period.

Frequently asked questions

Is smoke damage covered too?

Yes — smoke damage from a covered fire is included.

Are wildfires covered?

Yes, fire including wildfire is a covered peril in most states.

Related guides

• Does homeowners insurance cover smoke damage?
• What does homeowners insurance cover?

Sources: Insurance Information Institute (iii.org); Consumer Financial Protection Bureau; FEMA; state Departments of Insurance. General information, not insurance advice.