Alberta Home Insurance Policy

Guaranteed Replacement

In the event of a total loss (where the cost of repair exceeds the insured value of the property), guaranteed replacement helps cover the cost of rebuilding your home and insured attached structures. Guaranteed replacement typically falls into two categories:

Full replacement value: means the cost of rebuilding your home will be covered from the ground up, without any depreciation being applied. Even if the damage to your home is greater than your replacement value limit, your policy will make sure you are able to replace your property and possessions.

Without Guaranteed Replacement cost coverage on your home, the claim payout will resort to an Actual cash value payment.

Actual Cash Value: factors in natural depreciation when calculating a home insurance claim payout. This means that your final amount will vary depending on the current market value of fixtures and items versus the value of the same items when you originally purchased.

To determine what type of replacement cost best suits your needs, contact our team today!