They will only replace what your home is actually worth. It doesnt matter how much you had it covered for. If you insure it for under the amount it is actually worth, you will only recieve the amount that you insured it for. Its important to habe the exact property value, or atleast round it to the next thousandth. You should reevaluate the value every year because of inflation

Homeowner policies vary tremendously. Read you policy, or check with the insurance company for a plain English explaination. Many people have had nasty surprises when thay need to make a claim. You are doing the right thing by learning beforehand.