All Replacement Cost Coverage is Not Alike
Many insurers will offer extended replacement cost coverage if you insure your property to 100% of its replacement value. This type of coverage can help protect your property in years of high inflation, as prices can increase rapidly after you purchase your policy. Widespread claims such as the California fires also drive up the pricing not only for the area impacted by the claims, but for the entire country. Each company has their own options for the percentage offered by extended replacement cost. Your property’s replacement value is determined by current labor and materials costs.
Talking to your insurance agent can help you understand how much replacement value coverage you should have. Contact our office today if you have questions about your coverage.
