-
Actual Cash
Value
Your house or property is covered for the depreciated amount
of the actual value at the time of loss.
-
Extended
Replacement Cost
Your house or property is covered up to a specified amount
or cap. For example, assume the dwelling coverage in a
policy is $100,000 and it has a $150,000 cap. If there were
a fire and it was determined at the time of loss that the
home needed to be rebuilt, then extended replacement cost
coverage might pay up to $150,000 of rebuilding costs.
-
Guaranteed
Replacement
There's no cap or maximum pay-out amount on guaranteed
replacement coverage. For example, assume a home was
originally worth $100,000. But over the years, the owner
makes unique design, decorating and style changes that make
the home worth $250,000. If the home was destroyed in a fire
guaranteed replacement coverage would enable the owner to
restore the home to its $250,000 condition. This type of
coverage may cost more, but it provides the most protection.
