YARDLEY, PA, Apr 29, 2017—Most adults have 3 or more types of insurance. Health insurance, car insurance, homeowner’s insurance – the list of items you need insured may often feel endless. But what is guaranteed replacement cost insurance?
Wes Foster, Founder & CEO of Long & Foster Real Estate answers this question, below.
“The most comprehensive insurance policy is guaranteed replacement cost coverage, which will pay to rebuild your home even if the cost to rebuild is more than your policy limit,” explains Foster.
Of course, this kind of coverage is more expensive and can cost from about $400 to $1,000 a year or more, depending on the area and the price of the home.
“However, even if you can afford it, this insurance is not available everywhere or for every property,” notes Foster. For example, older homes may not be eligible. And some big insurance companies have begun to limit the amount they will pay to 120 percent of the policy's face value.
If you’re interested in guaranteed cost replacement insurance, talk to your lender today.
For more information on real estate, please contact Long & Foster Real Estate at firstname.lastname@example.org, 1-877-221-1776, or Long & Foster Real Estate.