There are
three ways to insure the structure of your home:
- REPLACEMENT
COST - Insurance that pays the
policyholder the cost of replacing the
damaged property without deduction for
depreciation, but limited to a maximum
dollar amount.
- EXTENDED REPLACEMENT
COST - An extended replacement cost
policy, one that covers costs up to a
certain percentage over the limit, may be
purchased instead of a guaranteed
replacement cost policy. This gives you
protection against such things as a
sudden increase in construction costs due
to a shortage of building
materials.ACTUAL
- CASH VALUE - Insurance
under which the policyholder receives an
amount equal to the replacement value of
damaged property minus an allowance for
depreciation. Unless a homeowners policy
specifies that property is covered for
its replacement value, the coverage is
for actual cash value.
As your agent, we can help
you find the choice that's right for you.
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