What is the difference between guaranteed replacement and extended replacement?
Under guaranteed replacement, the insurance covers 100% of costs needed to rebuild your home prior to the claim, regardless of policy limits. With extended replacement, your insurance will cover costs a maximum of 20-25% over the policy limits. Although it may seem like extended replacement, which offers up to 125% over your policy limits, would be a better choice, guaranteed replacement covers the cost of rebuilding your home regardless of how far it exceeds your policy limits.
