Remember that when you file an insurance claim, you will likely need to pay your deductible first. This is the amount you're responsible for before an insurer will pay toward a covered claim.

It's also important to remember that limits — the maximum amount your insurance policy will pay toward a covered loss — will apply. Your insurance provider can help you review your coverages to determine whether your coverage limits are appropriate to help repair or rebuild your home.

When it comes to replacing your belongings, your insurer will usually reimburse you in one of two ways: for the item's actual cash value or replacement cost.

Actual cash value coverage pays you the cash value of the contents you insured, but factors in depreciation of the item.
Replacement cost coverage helps reimburse you for the cost of replacing a damaged item with one of similar type and quality.

You can typically choose which type of personal property coverage you'd like when purchasing insurance. If you choose replacement cost coverage, your policy premium may increase.