Extended Replacement Cost
Insurance Glossary
An option that pays a stated percentage above the dwelling limit when a home costs more to rebuild than the policy anticipated, commonly in the range of 20 to 50 percent. It exists for situations where construction prices have risen since the limit was set, or where a regional disaster drives up labor and material costs after a widespread loss. It is a cushion with a ceiling, which is what separates it from guaranteed replacement cost, and the percentage offered varies by insurer and by state.
This content is for general informational purposes only and is not insurance, legal, or financial advice. Coverage, exclusions, eligibility, and pricing vary by insurer, by policy, and by state, and only the policy documents control what is covered. Always confirm the details of any coverage with a licensed insurance agent or the issuing carrier before you buy.
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