Is Replacement Cost the Right Coverage Option Amid Spiraling Costs?

The majority of homeowner’s insurance policies have what’s known as “replacement coverage,” which will cover the costs of repairs or reconstruction to rebuild your home to its original state after a covered event.

But thanks to rising costs of construction, including materials and manpower, some of these policies’ replacement coverage limits may not be enough to cover those costs. So, does that mean that replacement coverage policies are insufficient, and should you instead choose a policy that will pay you the market value of your damaged property?

Here’s what you need to know: Is Replacement Cost the Right Coverage Option Amid Spiraling Costs