What Is Guaranteed Replacement Cost Homeowners Insurance?

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   Tom Sheehan

   Agency Owner, The Thomas G Sheehan Agency, 27 Glen Road Sandy Hook, CT 06482

   When you hear the term "Guaranteed Replacement Cost" this is referring to a particular loss settlement option that is available in most modern Homeowners' Insurance contracts, in a nut shell it means that if your home was totally lost as a result of a covered peril, a fire for example, the contract states that the insurance company would pay the full cost of replacing your home as it was using building materials of like kind and quality. It is important, however that your home is insured to it's calculated replacement or reconstruction value at the beginning in order for that clause to be applicable.

   Answered on August 25, 2014

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