Inflation is soaring.

Here’s how to make sure your home insurance policy still has you covered

With inflation surging to a 41-year high and building material costs rising, the cost to rebuild your home has probably gone up. That means it may be time to adjust your home insurance coverage.

The “Coverage A” portion of your homeowners policy pays toward rebuilding or repairing the physical structure of your home, including its foundation, frames, walls, floors, and roof, if the property is damaged by a covered peril, such as burning to the ground in a fire. But that coverage may not provide enough coverage to fully protect your financial investment in your home.

The solution: upgrading your insurance policy to include Additional Rebuilding Expense Coverage.

What is Additional Rebuilding Expense Coverage? This coverage ensures you would be able to rebuild your home it if suffers a total loss (not repairable), even if the cost to do so exceeds the Coverage A limit of your policy.

For example, let’s say a house that cost $450,000 to build five years ago is insured for that amount and it’s destroyed by a fire. Today’s steep inflation drives up the rebuilding cost to $575,000. Our Homeowners Plus, Premier Choice Home, and Signature Choice Home packages provide Additional Rebuilding Expense Coverage that would cover the $125,000 difference.

But what about protection for the contents of your home? For complete coverage, you’ll need what’s called “Replacement Cost on Contents Coverage” (RCC).

What’s RCC?

Most homeowner policies pay claims for stolen, damaged, or destroyed personal property (e.g., furniture, clothing, lawnmowers) for the depreciated value of the items. That means the policyholder must pay the difference out of pocket when replacing such items. Homeowners policies with RCC coverage, however, get full replacement coverage for their items in the event of a covered hazard.

RCC pays the actual cost to replace the stolen/damaged/destroyed property with new versions of the same type and quality. It’s a key feature of our Homeowners Plus, Premier Choice Home, and Signature Choice Home, and Premier Choice Condo, Signature Choice Condo, and renters policies.

Here’s how it works: You first receive an initial payment, less the policy deductible, based on the actual cash value of the damaged/destroyed items. Then you replace the items and provide Electric Insurance with the receipts. Our claim professionals will review the receipts and determine payment for the eligible balance. It’s as simple as that.

RCC coverage is especially important in today’s economy, where the costs for consumer goods are rising quickly—meaning it would likely cost you more to replace your current belongings than it did to buy them.

Protect your investment in your home and its contents with inflation fighting coverage that includes replacement cost coverage for the physical structure of your home and your personal property.

Take the Risk Coach™ Approach

A 2022 survey found that 96% of survey respondents misunderstood at least one important feature of their coverage. More than half misunderstood several. We want better than that for our clients. When you work with our Risk Coaches, you’ll work with a licensed insurance professional who’ll help you get the right coverage at the best price.

Call or use Chat to Contact a Risk Coach

Use the chat feature on this page, or call us for a no-cost, no-obligation-to-buy, coverage needs assessment. Our Risk Coaches are glad to help you navigate the complex world of homeowners insurance coverage. Call us at 800.342.5342, Monday through Friday from 8:00 a.m. to 8:00 p.m. ET.

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