Guaranteed Replacement Cost

Plain English Definition: A policy provision that covers the full cost of replacing damaged property, regardless of limits.

What Guaranteed Replacement Cost really means for someone with an insurance policy

This feature ensures that if your property is destroyed, the insurer pays the full cost to replace it, even if it exceeds the policy’s declared value.

Guaranteed Replacement Cost Real World Examples

• A home insured for $300,000 is rebuilt for $350,000 due to construction cost increases.
• Furniture replacement is covered entirely after a major fire.
• Storm damage to a roof is repaired at full replacement value, even if prices have risen.