Guaranteed Replacement Cost Homeowners Insurance

Even if the damage exceeds the limits on your policy the insurance company is obligated to fully replace or rebuild your property without any deduction for depreciation.

Guaranteed replacement cost homeowners insurance. Common loss settlement options include. This valuation method fully indemnifies the insured without any depreciation and without a maximum reconstruction payment. Guaranteed replacement cost settlements pay to have your home repaired or rebuilt to its prior condition regardless of the rebuild costs. This policy will pay whatever it costs to put your home back together as it was before the covered disaster regardless of the limits listed in your policy.

Guaranteed replacement cost is one of a range of choices called loss settlement options in the business which insurance companies offer to homeowners. This can depend on your specific policy wording and the type of policy that you have. Replacement cost insurance is a coverage option for property insurance policies especially homeowners insurance. Guaranteed replacement cost is a type of home insurance policy that offers the highest level of coverage.

Rather than a guaranteed replacement policy some insurance companies offer an extended replacement policy. The policy pays the full cost of replacing the home even if this amount exceeds the policy limits. Guaranteed replacement cost is a type of dwelling coverage enhancement offered by some homeowners insurance companies. Comprehensive homeowner s coverage must include full replacement cost to repurchase all the items in your home today if they re lost stolen or destroyed.

Guaranteed replacement cost a property insurance valuation option found in some homeowners policies. 2 1 about sixty percent of homes are undervalued and potentially underinsured by 17 according to marshall swift boeckh a leading provider of building cost data to. If your home is destroyed and you have guaranteed replacement cost your policy will pay out the full reconstruction value of the home without factoring depreciation or coverage amount maximums into your claim settlement. Replacement cost is the amount of money it would cost to rebuild your home as it was before if it s destroyed or to purchase brand new items if your old ones are damaged or stolen.

Many homeowners don t realize that actual cash value policies subtract for wear and tear and depreciation. 1 with our guaranteed replacement cost coverage you re covered even if you need to rebuild your entire home. It pays for the replacement cost of your home and belongings. Each one works a little bit differently.