With the recent “disasters” nationwide, it has become clear to me that very few homeowners understand that they need to ensure that their policies cover replacement cost for their homes. To ensure that you can rebuild your house at the current market costs and codes, you MUST have replacement cost valuations and insurance coverages.
Whether you are dealing with missing tiles on the roof or a collapsed ceiling, knowing how replacement cost works can mean the difference between making do with quick fixes or restoring your home to its original condition.
Replacement cost is an option you usually choose when purchasing or renewing your homeowner’s insurance policy. It’s one way of valuing the property being insured – so it will affect how much your insurance pays out for a covered claim. Depending on the insurer and the policy you are getting, you may be able to choose replacement cost when insuring your home and roof (the dwelling itself), unattached structures (such as a shed, fence, detached garage, and pool), and your personal property (furniture, electronics, clothing, etc.).
Read full article on Optima Properties' Blog.
Comments(4)