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What Is Guaranteed Replacement Cost?

With guaranteed replacement cost coverage, the insurer will replace your home with one of like kind and quality, regardless of the cost or the dwelling coverage limit you carry.

Does GRC have any special requirements?

For guaranteed replacement cost to apply, homeowners must:

  • Provide the insurer with accurate dwelling features.
  • Carry a dwelling limit that meets or exceeds the reconstruction cost estimate.
  • Notify the insurer of any remodels.
  • Actually rebuild after a loss.

Can I Add GRC To my existing insurance policy?

Whether you can add guaranteed replacement cost depends upon whether your insurer offers GRC. This is a special coverage that is not offered by many insurers.

Guaranteed Replacement Cost benefits

In a perfect world, all homeowners insurance policies would include enough coverage to rebuild. But coverage is typically based on a reconstruction cost estimate, which is just that, an estimate. It could actually cost more than expected to rebuild. Also, labor and materials costs could rise unexpectedly and leave homeowners under covered. This could happen after a natural disaster or supply chain bottleneck. Guaranteed replacement cost is a safety net that ensures your home will be rebuilt to its former glory.

Get a free quote from Chris Elliott Insurance Agency today

Farmers Insurance is one of the few insurance companies in Washington that offers guaranteed replacement cost. Our agency specializes in home insurance–often writing more than any other Farmers agency in Washington State–and Farmers is known for offering some of the most competitive rates in the industry.