Services
Insurance
Loans
Repairs
Advice
About

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?

avatar
Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
“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.”
View full answer 
WHY YOU CAN TRUST JERRY
Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.

Join 4M+ members in lowering their car insurance

Easiest way to compare and buy car insurance

√
No long forms
√
No spam or unwanted phone calls
√
Quotes from top insurance companies
Find insurance savings