Guaranteed Replacement Cost: The Big Difference
When purchasing a home insurance policy, it’s important to buy enough coverage to protect yourself against financial loss if a catastrophe would occur.
Sixty-four percent of homes are undervalued, and potentially underinsured, by an average of 19 percent, according to Marshall & Swift/Boeckh, a California-based company that calculates residential building cost data. In the event of a total loss, you may be responsible for making up the difference out of pocket, an amount that can easily mean tens of thousands of dollars.
That’s why Erie Insurance offers Guaranteed Replacement Cost.* That one extra word — guaranteed — means you’ll be covered if your home is damaged or destroyed from a fire, tornado or other covered loss. You could rebuild your home after a major loss without worrying about depreciation, policy limits or insurance construction costs once you’ve repaired or replaced the damaged property.
The coverage is available with Erie Insurance’s home insurance policies. For more information, contact a local ERIE Agent today.
*Guaranteed Replacement Cost requires home improvements over $5,000 to be reported within 90 days and may be limited by a Functional Replacement Cost Loss Settlement endorsement. Coverage of costs to comply with laws or ordinances is subject to limits. Depreciation may be deducted until repair or replacement is made. Visit eriesecurehome.com/details or talk to your ERIE Agent for more information.