The next step up in coverage is extended replacement. You insure the home for the appraised value, and the policy will pay up to 125 percent of that amount to cover unforeseen costs. Even better is guaranteed replacement, which doesn’t have a preset limit. However, because of big losses in recent years, many insurance companies [...]
Replacement Coverage Most insurance companies offer replacement cost coverage. For an additional 10 percent or so, insurers will pay what it costs to replace your home and belongings up to the amount of your coverage. If your fifty-two-inch LCD TV that cost you $3,600 is damaged in a fire, you’ll get the full cost covered. [...]
