Which of the following is true regarding single dwellings that are insured to at least 80% of the replacement value?

When a single dwelling is insured to at least 80% of its replacement value, it automatically qualifies for replacement cost coverage. This means that in the event of a loss, the insurance policy will cover the cost of repairing or replacing the damaged property without deducting for depreciation, as long as the coverage is equal to or greater than the stipulated percentage of the replacement value.

This provision is designed to encourage homeowners to insure their properties adequately, ensuring they can recover fully from a loss. As a result, when the coverage meets or exceeds this threshold, insurers grant the more favorable replacement cost coverage instead of only providing actual cash value, which would factor in depreciation.

Other options, on the other hand, do not reflect the benefits provided by insuring at this level. Limited coverage options would typically be associated with lower levels of insurance coverage. There are various factors to consider with market value, and while properties may be insurable for amounts exceeding market value based on their replacement costs, that does not directly apply to eligibility for replacement cost coverage. Lastly, policies providing this level of coverage often include discounts to incentivize homeowners to insure adequately, contrary to the notion that such properties are not eligible for discounts.