What type of coverage is applied to single family dwellings that are owner-occupied and insured for at least 80%?

The correct answer is replacement cost coverage. This type of coverage is specifically designed to provide financial protection for single-family dwellings that are owner-occupied, ensuring that homeowners can rebuild or repair their property to its original condition after a covered loss, without depreciation deductions. In order to qualify for replacement cost coverage, the dwelling must be insured for at least 80% of its replacement value. This threshold helps ensure that the homeowner has adequate coverage to fully restore their property.

Replacement cost coverage is beneficial because it gives homeowners peace of mind knowing they can recover financially from a loss without facing the deductions that come with actual cash value, which takes depreciation into account. In contexts like insurance claims, emphasizing the importance of adequate limits is crucial, as it prevents underinsurance and potential financial hardship after a loss.

Other options, while relevant in different contexts, do not apply specifically to the scenario of a single-family dwelling that is owner-occupied with an adequate insurance value.