Replacement cost coverage is a feature of home insurance that is becoming more and more popular among Georgia home owners. Before you start looking for Georgia homeowner insurance quotes, you might want to learn more about this feature.
What does coverage for replacement cost mean?
Simply put, replacement cost coverage on a homeowner's insurance policy will pay for everything you need to fix or replace in your home and on your property, as long as the materials you use are the same or similar to those in your home before the damage. In other words, if the floor in your kitchen was linoleum, your replacement cost coverage probably won't pay for a hardwood floor.
If you're not sure about a certain material, ask your homeowner's insurance agent for help figuring out if it's similar enough to your old material for your replacement cost coverage to pay for it.
Should I worry about any small print?
With replacement cost coverage, the kind of information you can expect to find is about how much time your Georgia home owner insurance company gives you to fix or replace things. Most of the time, they say this will take 180 days.
Every home owner insurance policy has its own small print, and every company that sells home owner insurance does, too. Always read the fine print carefully, and if you don't understand something, ask your homeowner's insurance agent to explain it.
So, if I have replacement cost coverage, I don't have to pay anything to fix or replace my home?
Almost. You have been paying the premiums on your Georgia homeowner's insurance policy, right? Plus, you'll have to pay your insurance policy's deductible before the replacement cost feature kicks in. This is a small amount of money compared to what your Georgia home owner insurance company will pay to replace and fix your home.
