Policies that pay to replace a home regardless of the cost to the insurer are called guaranteed replacement cost policies.
"The best coverage is guaranteed replacement cost coverage with no cap," Ms. Clement said.
"It is critical to make sure you have guaranteed replacement cost coverage for personal property," Mr. Mackoul said.
Ms. Clement said some insurance carriers automatically provide guaranteed replacement cost and unlimited building ordinance coverage as part of their standard policies.
One way to be certain of having enough insurance to cover a total loss, he said, is to get "guaranteed replacement cost" coverage.
"You could buy a house in Greenwich for $1 million, but the cost to rebuild it might be $3 million," she said, adding that guaranteed replacement cost ensures "like kind" replacement of all elements of the house.
Now, particularly for high-end homes and apartments with guaranteed replacement cost coverage, insurers often send out appraisers for a first-hand look at what they will be insuring.
On the other hand, he said, with guaranteed replacement cost coverage, the loss of the same television would result in a payment sufficient to replace the set with a similar model at today's prices.
It has guaranteed replacement social housing for residents with secured tenancies, but other families who have been placed in the vacant blocks in recent years will not be rehoused.
So, for example, if a house built in the early 1900's has plaster walls, guaranteed replacement cost coverage will provide however much it costs to hire a craftsman to install new plaster walls.
Mr. Mackoul said that while the premium rates for all three types of coverage are about the same, guaranteed replacement cost coverage will cost more because the carrier will require that the homeowner have a higher amount of coverage.
