What is an extended replacement cost on a home insurance policy?

My dad told me that adding an extended replacement cost policy on my home insurance is a smart move, but I have no idea what this is. What is an extended replacement cost?

Answer
“An extended replacement cost on your home insurance policy provides a certain percentage over your policy limit for repairs when fire or other natural disasters cause damage.
Without this policy, the insurance company will only pay for repairs up to the appraised value of your home. With an extended replacement, you can usually get up to 25% more than what regular policies might pay.
To save even more money, you may also want to try bundling with your car insurance provider. Having multiple policies with one provider can give you discounts on both policies.
Extended replacement cost isn’t available with every insurance company, so you may need to shop around to find a policy that offers it. If you want to save time and energy reaching out to different companies, try using the free Jerry app. Jerry compares rates from the top providers and even helps fill out the signup paperwork.”
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Eric Schad
Answered on Aug 12, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
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