If you live in an area that poses significant climate or other risks to your house, or if you simply want very thorough coverage, you might be looking into guaranteed replacement cost coverage, which may allow you to rebuild your home after it gets significantly harmed or even destroyed. However, if you’ve had trouble identifying insurance companies offering guaranteed replacement cost, you can use this guide to figure out how to get this coverage.
Not all home insurance policies cover full replacement costs in the event of reconstruction, especially once costs like the following are taken into account. You’ll want to look for a policy that will cover your full reconstruction cost, regardless of policy limits.
The amount of guaranteed replacement coverage you get could depend on your current homeowner’s insurance covers. Unfortunately, many homeowners are under the impression that their regular property insurance covers more than it actually might. If your policy only covers, for instance, 80% of your home’s value, or less if your home has appreciated significantly since you bought it, this alone might not be enough to cover costs.
Finding insurance companies offering guaranteed replacement cost isn’t always easy, but the coverage can be well worth the search. With guaranteed replacement cost coverage, you can rest assured you’ll be able to rebuild your home even after a disaster.
