What Is Replacement Cost Coverage In Insurance. There are conditions which apply to this coverage. A homeowners insurance policy with actual cash value coverage typically determines value by taking the cost to replace your personal belongings and reducing that amount due to depreciation from factors such as age or wear and tear, says the insurance information institute (iii).
Instead, it provides 125% to 150% of the home's replacement cost. Also known as extended dwelling coverage or increased replacement cost, extended replacement cost may help repair or rebuild your home after a covered loss when the cost of materials and labor. Please connect with us to ensure that you have adequate coverage to protect you and your family.