Home replacement coverage is part of a home insurance policy. It is designed to cover the cost of building a home from scratch. As floods, tornadoes, and thunderstorm winds aren’t uncommon in Spring Grove, IL, it’s wise to understand how this form of coverage works and what it does and doesn’t cover.
Home Replacement Coverage: What is and Isn’t Covered
Home replacement coverage will cover the cost of rebuilding the home using the same materials used in the original construction of your home. For instance, if the house is made from brick, your insurer will cover the cost of rebuilding a brick home. Replacement coverage also covers other structures on the property, including fences and detached sheds and garages.
Unfortunately, this form of insurance doesn’t guarantee you won’t have to pay anything out of pocket if your home is destroyed. You’ll need to pay a deductible. You’ll also need to pay for costs exceeding the policy limit. Such fees can increase if multiple homes in your area are destroyed or damaged and construction costs go higher than your insurer initially estimated. If your house is expensive, you may want to consider extended replacement cost coverage or guaranteed replacement coverage to make sure you receive enough compensation to rebuild your home.
Call Spring Grove Insurance for More Information
Spring Grove Insurance specializes in helping Spring Grove, IL, homeowners choose the best coverage options for their personal situation. We know that your home is likely your most valuable asset. That’s why we do everything we can to help you find great insurance at the best possible price. Call us to learn more about your choices or get a policy quote.
