A brief explanation of replacement cost coverage:

1. What is Replacement Cost Coverage?

Simply put, it is the coverage that will allow you the opportunity to repair or replace your dwelling without consideration for depreciation.

2. How do I get Replacement Cost Coverage?

It’s easy, just purchase your policy with the dwelling limit equal to the Replacement Cost. We can help you estimate re-placement cost.

3. What if I don’t insure my dwelling to its Replacement Cost?

Should you suffer a covered loss to your dwelling but it’s not in-sured to your policy’s replacement cost pro-visions, the cost of repair whether large or small, will be calculated with depreciation. This could cost you far more in out-of-pocket expense than the additional insurance premium you’d pay to be properly insured.

4. How does Replacement Cost relate to loan value or market value?

Market Value is the amount you may expect to receive if you sell your property. Loan value is the amount you might expect to be able to borrow against your property. Both include the value of your land and may have little to do with cost to repair or rebuild the dwelling.

You buy insurance to repair or rebuild your dwelling if it is damaged. A Property policy can include many different types of coverage. Dwelling, personal prop-erty, loss of use and liability needs and can be customized to your specific requirements. We will work with you to help determine the best coverage for your needs.

Please feel free to contact us to further discuss this important topic.