If you haven’t checked your homeowner’s insurance policy in a while, it may be wise to do so. Inflation is rapidly increasing building costs and if your house is damaged or destroyed, having inadequate coverage might result in a significant loss. In an interview with Consumer Affairs, Partner P.J. Miller explained how having a “replacement cost guarantee” provision can cover the cost to repair or replace your home, even if the amount exceeds your coverage.

P.J. said the forerunner of the current day “guaranteed replacement cost” was the “inflation guard endorsement and while it’s not known if all carriers provided this option, most did for various reasons. “An example would be the simple fact that you don’t have to remember to contact your carrier to increase coverage and the peace of mind knowing that it’s done automatically.”

He also noted that it’s important to understand how your policy’s inflation adjustment works. Some policies might increase the coverage only for the policy term and then reset it to the prior term’s coverage amount. 

Read the full article here.

Questions about your homeowner’s insurance coverage? Contact Wallace & Turner at 937-324-8492 or info@wtins.com