Most homeowners do not know that in North Carolina we have a variety of homeowners policies. The main two I want to focus on are the HO-3 and the HE-7 and the replacement cost on your home. 

In the event of a total loss the HO-3 will give you the amount you list on the policy (which is your 100% amount) plus a possible 25% more for increase cost of construction.  That gives you a total of 125% to rebuild your house.  Of course you need to pay for the extra 25%.

The HE-7 is a guaranteed replacement cost policy.  As long as you start with the 100% of what it cost to rebuild your house, then if anything happens,  your house will be rebuilt back to the way it was regardless of what you have listed on your policy.  In other words, you aren't limited to the 125%.

A large portion  of the insurance companies in North Carolina do not offer the HE-7 coverage form.  So when you call to get a comparative quote be sure to ask which form they are quoting.  You wont be getting apples to apples if you dont ask.

Always ask for the HE-7 form.  The cost is usually less than the HO-3 and you get much more coverage. 

««««     See article to left titled --> HE-7 verses HO-3 Homeowners