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R&R Insurance Blog

Would your current insurance policy rebuild your home?

Posted by the knowledge brokers

How does a family bounce back from catastrophe like a fire? Like so many victims of wildfires - the Martins were devastated. They were unexpectedly hit by a wildfire which destroyed at least 1,500 homes from Santa Barbara to the Mexican border during the 2007 California wildfires. Read the true story about a family who's home was destroyed, featured in the January 2008 issue of Money magazine. This story reiterates the importance replacement value has in your homeowners insurance policy.

The Martins are also facing severe financial repercussions. They were initially elated at receiving $1.1 million from Farmers, their insurance company, just two weeks after the fire ($785,000 of the total was earmarked for rebuilding the house). The likely real cost: $1.35 million." 

Would your insurance cover the cost of rebuilding your house if it was destroyed by fire or other natural disaster? Just because you see "replacement" in your policy, you can’t be sure the insurance company will pay to replace everything and cover the costs. Most policies cover replacement cost for damage to the structure. But sometimes rebuilding costs can push above homeowners policy limits, leaving you without enough money to cover the bill. To protect against such a situation, you need guaranteed replacement coverage. Guaranteed replacement coverage pays the full cost of replacing or repairing a damaged or destroyed home, even if it is above the policy limit.

Talk to your agent to find out if your current homeowner’s policy provides 100% complete Replacement Cost Coverage on your home and contents. R&R offers carriers that have no cap on the replacement cost.

Wisconsin residents, please contact a knowledge broker for a quote with this coverage included.