4 Good Reasons To Have Guaranteed Replacement Cost Insurance


Being a homeowner can feel refreshing for anyone who has paid rent or lived under someone else’s roof. However, it also comes with unexpected circumstances. Adding guaranteed replacement cost insurance is recommended to financially cover your home. Here is why.

1. Current vs. Original Value

The original home value covered by homeowner’s insurance at the time of purchase differs from the current value. Reasons for this include the following:

  • Indoor renovation

  • Exterior updates

  • Conservation landscaping

  • Neighborhood appreciation

 2. More Than Standard

Standard homeowner’s insurance does not cover everything. For example, damage caused by natural disasters often requires separate coverage. Even if you live on the water or within a known natural disaster area, additional insurance is often required. Source: https://www.owensgroup.com/.

 3. Loss of Value

When depreciation occurs, additional insurance is needed. This happens if there are no property improvements or the market is saturated with houses for sale, thereby causing inflation and your home’s worth to decrease.

 4. Enough Coverage

Each time a home project is complete, check if appreciation or depreciation occurred and change your policy accordingly. Then you will know you are covered.


Having to rebuild your home and finding out your insurance doesn’t cover everything can turn into a financial nightmare. Guaranteed replacement cost insurance is a way to include any differences in value and add a safeguard for unexpected occurrences.