You’ve probably seen the term replacement cost value on your homeowner’s insurance policy. But what does it really mean? Our team at Coastal Wealth Insurance LLC has put together this handy guide for you to review.
What is Replacement Cost Value?
To put it simply, replacement cost value is what it would cost to build your home from the ground up in the event of a major disaster or fire. If your property is older, this also means constructing it to include modern fixtures and building code standards, which often cost much more than what you might currently have. Furthermore, replacement cost value takes into consideration the cost of labor for workers and supplies to reconstruct the residence.
Why Does Having Replacement Cost Value Coverage Even Matter?
The reason why having replacement coverage even matters is that it protects you in the event of a claim. If something happens to your home, you will expect your insurance policy to help you rebuild it back to the same state it was in before the incident. Failure to have this type of coverage could mean only receiving a fraction of your actual monetary needs to get the home back into a livable state.
Should I Add Replacement Cost Value to My Fort Lauderdale, FL Policy If I Don’t Already Have It?
Most insurance carriers have latched onto this type of coverage in recent years and already automatically include replacement cost value in their homeowner’s policies. However, if your coverage contract is older, it might be time to discuss with your agent the benefits of adding replacement cost coverage.
Are you looking to review your homeowner’s insurance policy? Contact Coastal Wealth Insurance LLC now for a no-obligation review of your Fort Lauderdale, FL coverage needs.
Fort Lauderdale FL