Here at Chadwick Financial Advisors, we recommend you purchase home insurance coverage equal to your home’s estimated replacement cost. First get an estimate of the replacement cost of your home, then select the coverage amount that best fits your needs. Determining your home’s estimated replacement cost is important because it ultimately determines which policy options are available to you. Since it’s impossible to predict today what the exact cost will be to replace your home in the future, it’s important to have enough home insurance coverage to account for unforeseen circumstances.

Here are a few key terms and definitions associated with your ‘Replacement Cost’ home insurance…

  1. Eligible Property
    1. Covered losses to the following property are settled at replacement cost at the time of the loss:
      1. Coverage C; and
      2. If covered in this policy:
        1. Awnings, outdoor antennas and outdoor equipment; and
        2. Carpeting and household appliances; whether or not attached to buildings.
    2. This method of loss settlement will also apply to the following articles or classes of property if they are separately described and specifically insured in this policy and not subject to agreed value loss settlement:
      1. Jewelry;
      2. Furs and garments:
        1. Trimmed with fur; or
        2. Consisting principally of fur;
      3. Cameras, projection machines, films and related articles of equipment;
      4. Musical equipment and related articles of equipment;
      5. Silverware, silver-plated ware, goldware, gold-plated ware and pewterware, but excluding:
        1. Pens or Pencials;
        2. Flasks;
        3. Smoking implements; or
        4. Jewelry; and
      6. Golfer’s equipment meaning golf clubs, golf clothing and golf equipment.
    3. Personal Property Replacement Cost loss settlement will not apply to other classes of property separately described and specifically insured.
  2. Ineligible Property
    Property listed below is not eligible for replacement cost loss settlement. Any loss will be settled at actual cash value at the time of loss but not more than the amount required to repair or replace.

    1. Antiques, fine arts, paintings and similar articles of rarity or antiquity, which cannot be replaced.
    2. Memorabilia, souvenirs, collectors items and similar articles, whose age or history contribute to their value.
    3. Articles not maintained in good or workable condition.
    4. Articles that are outdated or obsolete and are stored or not being used.
  3. Replacement Cost Loss Settlement Condition
    The following loss settlement condition applies to all property described in A. above:

    1. We will pay no more than the least of the following amounts:
      1. Replacement cost at the time of loss without deduction for depreciation;
      2. The full cost of repair at the time of loss;
      3. The limit of liability that applies to Coverage C, if applicable;
      4. Any applicable special limits of liability stated in this policy; or
      5. For loss to any item described in A.2.a.-f. above, the limit of liability that applies to the item.
    2. If the cost to repair or replace the property described in A. above is more than $500, we will pay no more than the actual cash value for the loss until the actual repair or replacement is complete.
    3. You may make a claim for loss on an actual cash value basis and then make claim for any additional liability in accordance with this endorsement provided you notify us, within 180 days after the date of the loss, of your intent to repair or replace the damaged property.

All other provisions of this policy apply.