home cutout with calculator and stack of coins, extended replacement cost coverage

What to Know About Extended Replacement Cost Coverage

Protect your home with extended replacement cost coverage.

If you own a home, then you know that one of the best ways to protect it from disaster is with homeowners insurance.  Specifically, the dwelling portion of your policy is designed to cover the cost of repairing or replacing your home in the event of a major disaster.  However, many homeowners aren’t sure how much dwelling coverage they actually need.  Fortunately, securing extended replacement cost coverage is one of the best ways to ensure that you have comprehensive protection for your home.  Here’s what you need to know about this coverage.

  • What does extended replacement cost cover?

When you have standard dwelling coverage, your policy will pay to return your home to its original condition.  However, you only have coverage up to your policy limit.  When you secure extended replacement cost, you receive additional dwelling coverage that extends a certain percentage past your policy’s limit, usually 10-25%.

  • Do you really need this coverage?

Due to unforeseen factors, your standard home insurance policy may not be enough to completely cover the cost of repairing or replacing your home.  Having extended replacement cost coverage ensures that you can offset the costs that exceed your standard coverage limits.  This protects you from having to pay for home repairs out of your own pocket.

  • How much does this coverage cost?

While securing extended replacement cost coverage will increase your homeowners insurance premiums, the increase is probably less than you are imagining.  While your individual factors will dictate your cost, homeowners can typically expect to see about a $25-$50 increase in their annual insurance costs.

This is what you need to know about extended replacement cost coverage.  Do you need help securing your home the comprehensive coverage that it needs?  If so, then contact the experts at Tri-Star Insurance/HUB International.  We are ready to assist you with all your home insurance needs today.