You’ll learn more about actual cash value below.) (For example: ERIE does not offer actual cash value loss settlement for the dwelling on your primary home – it’s only available for secondary homes and contents. Different insurance companies offer different things, too. Guaranteed replacement cost is one of a range of choices – called “loss settlement options” in the business – which insurance companies offer to homeowners.Įach one works a little bit differently. What are Loss Settlement Options in Homeowners Insurance? Guaranteed replacement cost takes the guesswork out, assuring that you’re covered – even if you need to rebuild your entire home 1. This is why replacement cost is often more than market value for your home, or even what you might be able to sell it for.įiguring out rebuilding costs can be elusive, as a range of factors contribute to what that actual cost might be. “The question you need to be asking is, ‘How much would it cost if a builder needs to rebuild it?” “People naturally gravitate to how much they paid for the house, but we’re not insuring it to buy it from you – we’re insuring it to rebuild it in case something happens,” Buckel says. See also: How Much Does Homeowners Insurance Cost? The answer is often: More than you just paid for it, Buckel says. When you purchase a home and start thinking about protecting your investment, this is often the first question. For specific questions or a personalized estimate for your home, talk to a local insurance professional like an Erie Insurance agent. In North Carolina, ask about Enhanced Replacement Cost. Keep in mind that guaranteed replacement cost isn’t available in all states. With the everchanging price of building materials and labor, it’s easy to see why GRC is the gold standard for homeowners insurance. “The reality is that it’s almost impossible to estimate to the penny what it’s going to cost to rebuild a home. “Guaranteed replacement cost gives you peace of mind,” says Bob Buckel, vice president and product manager at Erie Insurance. WHY SHOULD I CONSIDER GUARANTEED REPLACEMENT COST? Why? Because guaranteed replacement cost will pay for the full cost of rebuilding your house back to its previous size and specifications 1 – right down to the granite countertops, custom bookshelves, and gleaming hardwood floors that you so love. If you get guaranteed replacement cost coverage, that is unlikely to happen. There are few things in life worse than losing your home to fire or a natural disaster.Įxcept, that is, discovering in the aftermath that you don’t have enough homeowners insurance coverage to rebuild the house back to the way it was before trouble struck.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |