Homeowners Insurance: Replacement Cost Coverage

Homeowners Insurance: Replacement Cost Coverage

Providing Your Home With Full Coverage

As a homeowner, protecting your biggest investment is likely on the top of your list of priorities. In doing so, you obtain homeowners insurance and now you are protected, right? Often, the standard policies will not suffice in providing you with the protection you deserve if a severe accident or natural disaster occurs. This is in part because standard homeowners insurance policies provide you with coverage for your home’s market value, as opposed to its replacement cost.

Replacement cost coverage is a form of reimbursement that does not take into account the depreciation of your home. When you opt for replacement cost coverage, you will be spending more on premiums each month, however, if a disaster occurs, your home will be rebuilt based on appraisal terms. When you have replacement cost coverage on your homeowners’ insurance policy, you will need to obtain an appraisal.

This appraisal will calculate exactly how much your home would cost to build it in its exact same location. The appraisal will also keep in mind the quality of your design, the materials necessary to rebuild, and labor costs. Additionally, costs to comply with all current building codes, architect fees, engineering fees, and any other vital expenses will be covered.

Therefore, it is important that you sit down with your agent and discuss your exclusive risk factor and how you can reduce those vulnerabilities. Perhaps simply adding replacement cost coverage can provide you with peace of mind that you will be protected if a disaster occurs.

Contact CorMarc Insurance Services in Murrieta for all of your California homeowners insurance needs. You deserve to feel confident in your home’s security, and replacement cost coverage can be your answer to achieving peace of mind.