When it comes to understanding your Homeowners Insurance policy, there are many terms and conditions that can overwhelm you and affect your coverage if you make the wrong decision. 
One of the major coverage items is called Extended Replacement Cost. This coverage extends and increases the limit of insurance on your dwelling.
And example is if you have $500,000 up dwelling coverage on your policy, and a 150% extended replacement cap on your policy, the total policy limit to repair your dwelling would be $750,000. While this is relatively straightforward, there are all different Extended Replacement Cost factors that are offered by the various insurance companies ranging from no extended replacement coverage to unlimited extended replacement coverage.
The reason this is such an important item on your insurance policy is that as many wild fire victims are finding out that their dwelling limit was low and then many of those policyholders had low or limited extended replacement cost caps. 
This means the policies are coming up short when they are trying to rebuild their homes. Compounding the issue is that when many homes in a particular area are burned or damaged, the cost to repair and replace increases dramatically because there’s a shortage of contractors and building materials.
When buying an insurance policy, it’s very tempting to feel like comparing the price is the best way to start the process. When it comes to a homeowners policy however one should really start with the coverage by making sure that you have a High enough limit that will protect you for these increased costs that can occur when your home is damaged by fire.
Our job is to help you understand the differences of policies that are available, explain the cost and coverage, and help protect your boss valuable asset with the best insurance to meet your needs. Please give us a call today.
