What is true for single dwellings insured for at least 80% of replacement value?

When single dwellings are insured for at least 80% of their replacement value, they are automatically provided with replacement cost coverage. This means that in the event of a loss, the insurer will cover the cost to replace the damaged property without depreciation being factored in, allowing homeowners to restore their property to its original condition without financial loss due to depreciation. This automatic provision encourages homeowners to insure their dwellings adequately, ensuring they can fully rebuild in case of significant damage.

In contrast, options mentioning deductibles or qualifications for flood insurance don’t specifically pertain to the coverage levels related to replacement costs and would not result in automatic coverage benefits. Additionally, exclusion from flood insurance does not relate to the level of replacement value coverage a dwelling might hold. Thus, the direct relationship between carrying adequate insurance and receiving replacement cost coverage is the key point leading to the conclusion that being insured for 80% or more of the replacement cost guarantees this type of coverage.