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What Is Guaranteed Replacement Cost (GRC)?

Homeowners insurance is purchased primarily to cover a home after a disaster such as a fire or water leak.  Most home insurance policies include a dwelling coverage limit, or maximum, that would be paid to rebuild the home.  But what if coverage is not adequate to rebuild?  With guaranteed replacement cost, 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 coverage to apply, homeowners must:

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

Can I Add GRC To my existing home insurance policy?

Whether you can add GRC depends upon whether your insurer offers it. This is a special coverage that is not offered by many insurers.  For a more extensive list of home coverages, click here.

Guaranteed Replacement Cost benefits

In a perfect world, all homeowners insurance policies would include enough coverage to rebuild. However home 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. GRC is a safety net that ensures your home will be rebuilt to its former glory, regardless of the cost.

Looking for Homeowners Insurance in Greater Seattle?  Contact Chris Elliott Insurance Agency!

Farmers Insurance is one of the few insurance companies in Washington that offers guaranteed replacement cost. Our Seattle insurance 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.

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