Should You Choose Functional Replacement Cost or Replacement Cost to Rebuild Your Home
Choosing between Functional Replacement Cost and Replacement Cost coverage can significantly affect how your home is repaired or rebuilt after a major insurance loss. Learn the differences between these homeowners insurance settlement options, why older and historic homes often use Functional Replacement Cost coverage, and how rebuilding expectations, construction materials, and insurance premiums may be impacted after a claim.
5 min read
Understanding Replacement Cost vs. Functional Replacement Cost in Insurance
Older and historic homes often contain specialty materials and outdated construction features that can significantly affect rebuilding costs after a major insurance loss. Learn why insurance companies use Functional Replacement Cost coverage, how it differs from Replacement Cost coverage, and why understanding rebuilding expectations, claim settlements, and older-home insurance challenges can be extremely important before a claim happens.
4 min read
