All homeowners should buy “guaranteed replacement value” homeowners insurance. This means that their home will be rebuilt in the event of a disaster – no matter what the cost. Of course, many of you may be thinking that this is what would happen anyway, right? Wrong. Because home values have increased substantially in recent years, it probably costs more to build a house than when you originally purchased your home and your insurance policy. The good news is that guaranteed replacement value policies will absorb the increased costs and provide the homeowner with a cushion if construction prices increase.
This blog on guaranteed replacement value homeowners insurance was prepared by David Gorman, Owner at Gorman Insurance. Reach David at 617-277-5500 or davidg@gormanins.communityhomesforsale.com.
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