If my home burned to the ground, how much money would the insurance company give me?

To calculate how much you'll be reimbursed for a loss if the amount's less than your limits, insurance companies will normally use one of two methods. The most common approach is to calculate the actual cash value—which is the replacement value minus depreciation. The second approach is to calculate the replacement cost of the lost property with no depreciation, but usually with a maximum value. Be sure to keep in mind that the company will also subtract the amount of your deductible from the settlement.