WEDNESDAY, NOVEMBER 11, 2015
Many insurance companies have changed the wording on homeowner policies from Guarantee Replacement Cost to Extended Dwelling Coverage with a percentage such as 25%. In other words, if a home is insured for $200,000 they will not offer Guarantee Replacement Cost; however, they will go 25% over($50,000) over $200,000 in the event the rebuilding calculations are off. However, it is the duty of the homeowner to report any/all substantial improvements(such as increasing size of home by adding on or changing an unfinished basement into a 3/4 finished basement) as both of these examples will increase the Rebuilding Cost/Replacement Cost to a home.
This Extended Dwelling Coverage typically is NOT included on Market Value homeowner policies, as those policies are not rebuilding type of policies. I'd suggest checking your policy to be sure which type of policy you selected.
ANY further questions please contact Flanigan Insurance agency @ 314-727-6000.