Does insurance under the NFIP provide coverage at replacement cost?

Replacement cost coverage is available for a single-family dwelling, insured under the Dwelling Form that is the policyholder’s principal residence and is insured for at least 80 percent of the building’s total insurable value at the time of the loss, or the maximum amount of insurance available under the Program. Replacement cost coverage does not apply to manufactured (i.e., mobile) homes smaller than certain dimensions specified in the policy.

Losses are adjusted on a replacement cost basis for residential condominium buildings insured under the Residential Condominium Building Association Policy (RCBAP). However, coverage amounts less than 80 percent of the building’s full replacement cost value (RCV) at the time of loss will be subject to a coinsurance penalty.

Building losses under the General Property Form are always adjusted on an actual cash value basis.

Contents losses are always adjusted on an actual cash value basis. Actual cash value means the replacement cost of an insured item of property at the time of loss, less the value of physical depreciation of the item damaged.