Homeowner's policies may include a clause that automatically raises the policy coverage amount each year to keep pace with inflationary increases in the cost of replacing the dwelling.

Question

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Some homeowner's policies do include an inflation guard clause which automatically adjusts the coverage amount based on annual inflation rates. This helps to ensure that the policy coverage is enough to cover the cost of rebuilding or repairing the home if it is damaged or destroyed. However, not all policies include this feature so it's important to check with your insurance provider to see if it's included in your policy.

Homeowner's Policies May Include a Clause That Automatically Raises the Policy