In 2021, Homeowners are given the option for “Guaranteed Replacement Cost” on their home insurance policy. This leads many existing homeowners & first-time Homebuyers wondering “?
In this article, Premier Shield Insurance will break down “what is guaranteed replacement cost coverage on your home”.
How does guaranteed replacement cost work?
Guaranteed replacement cost works like most optional endorsements on home insurance policies. You only have guaranteed replacement cost coverage if your home insurance company offers it AND you have elected the endorsement on your policy.
At Premier Shield, we help consumers and first-time homeowners throughout the United States (OH, VA, SC, TX, FL, NM, MA CT, NH, ME, RI) find better and more comprehensive coverage for home insurance policies.
Our favorite home insurance coverage option for homeowners is “Guaranteed Replacement Cost” because it offers policyholders an incredible value and peace of mind with coverage up to $5,000,000.
With the guaranteed replacement cost endorsement coverage, the home insurance company is saying “We will rebuild your home, no matter what it costs, for up to $5,000,000”.
An example would be an older home with a market value of $500,000 in Ohio that gets destroyed in a house fire.
The insurance company is obligated to make the insured “whole”. Due to unique characteristics of the home and custom features it actually cost $1,000,000 to rebuild the home.
In this example, the insurance company will spend the $1,000,000 to rebuild the home.
Expert agents at the Premier Shield Insurance agency are here to help you save between 30-40% a year on your existing home insurance policy while offering you guaranteed replacement cost coverage standard on every homeowners insurance policy issued through Openly home insurance.