Insurance policies are something the typical person does not think about until it is time to use one. Then it is really too late to actually "think" about it...you are at that time stuck with what you have got.
With regard to homeowner's policies - do you know the difference between "replacement cost" policies and "Actual Cash Value" (ACV) policies? Most folks do not. Homeowner's policies are available in both iterations.
An ACV policy - In the property and casualty insurance industry, Actual Cash Value (ACV) is a method of valuing insured property, or the value computed by that method. Actual Cash Value (ACV) is not equal to replacement cost value (RCV). ACV is computed by subtracting depreciation from replacement cost. The last part is important - the policy holder of an ACV policy will receive ONLY payment calculated AFTER DEPRECIATION!
Replacement Cost policy - The term replacement cost or replacement value refers to the amount that an entity would have to pay to replace an asset at the present time, according to its current worth. In the insurance industry, "replacement cost" or "replacement cost value" is one of several method of determining the value of an insured item.
So - in short, get REPLACEMENT COST.