Think You’re Fully Covered With Guaranteed Replacement Cost? Maybe Not.

If your home insurance policy includes Guaranteed Replacement Cost, that is great, but it does not automatically mean you are fully protected.

Guaranteed Replacement Cost, or GRC, means your insurer will pay the full cost to rebuild your home, even if it ends up being more than your policy’s stated limit. It is an excellent feature, and many of our clients have it. But here is the catch. there are rules, and if those rules are not followed, the guarantee may not apply.

For example, if you renovate your kitchen, finish your basement, or build an addition and do not let your broker know, your insurer may argue that the value of the home has changed and that the GRC clause is no longer valid. Some companies also require regular rebuilding cost evaluations to keep the guarantee in place.

It is also worth looking beyond just the house itself. While coverages like contents, detached structures, and additional living expenses typically include inflation protection, those limits are still based on percentages of the main dwelling amount. If that dwelling value has not been reviewed in years, even with inflation indexing, those related coverages may no longer be enough.

At Haas Insurance, we take the time to check in with you about changes to your home and review your coverage as your needs evolve. It is not about selling you more, it is about making sure your protection keeps up with your life.

Have you made updates or renovations? Let’s talk. A quick review helps make sure your Guaranteed Replacement Cost remains valid and your coverage still fits.

Have questions or need a quote? Contact Haas Insurance in London, Ontario https://haasinsurance.ca/contact-us/ today.