Hi Abhishek, We are not insurance gurus. Whatever little we know we are sharing with you.
In Home insurance there are two types of cover -
1- Replacement Cost Cover
2- Cash Value Cover

Replacement cost coverage pays to replace your home and belongings with materials of "like kind and quality" at current prices.
Cash value policies reimburse the depreciated value of the item covered.
Normally a replacement cost policy will usually cost a little more.