GUARANTEED REPLACEMENT COST
You ask how we were able to save our insured $150,000 on their homeowners insurance. Here’s the story, we had an insured who owned a $200,000 dollar home that we insured. They had a kitchen fire in their home, which doesn’t sound like that big of a deal, but, they said the fire got so hot that it actual cracked the foundation and the home was considered a total loss. So our insured’s had to take whatever they could and move into a hotel room until their home was rebuilt.
To knock down their old home, remove the wreckage, rebuild their home back to what it was and pay for all the expenses the total cost came back at $350,000. So when we wrote the home policy on this customer our agent did a great job and made sure the company they wrote the policy with had GUARANTEED replacement cost.
Most companies and many of the largest name brand companies have a cap on what they will replace. Their caps usually range from 100%, 125% or even 150% of coverage A. So what would that mean if our insured would have bought a policy from one of these companies?
Companies that cap at 100% of coverage A would have paid out $200,000 for the claim and our insured would have had to pay out of their pocket $150,000!
Companies that cap at 125% of coverage A would have paid out $250,000 for the claim and our insured would have had to pay out of their pocket $100,000!
Companies that cap at 150% of coverage A would have paid out $300,000 for the claim and our insured would have had to pay out of their pocket $50,000.
So before you renew, ask your agent what their cap is on you home, make sure you have GUARANTEED replacement cost. If you don’t, or if you just want to discuss our options, call us today.
If you would like an instant quote on your auto and home click INSTANT QUOTE.
You can contact our office at (859) 441-2886