When purchasing a home insurance policy, it’s important to buy enough coverage to protect yourself against financial loss if a catastrophe would occur.
Sixty-four percent of homes are undervalued, and potentially underinsured, by an average of 19 percent, according to Marshall & Swift/Boeckh, a California-based company that calculates residential building cost data. In the event of a total loss, you may be responsible for making up the difference out of pocket, an amount that can easily mean tens of thousands of dollars.
That’s why Erie Insurance offers Guaranteed Replacement Cost. That one extra word guaranteed means you’ll be covered if your home is damaged or destroyed from a fire, tornado or other covered loss. You could rebuild your home after a major loss without worrying about depreciation, policy limits or insurance construction costs once you’ve repaired or replaced the damaged property.