If you purchase a homeowner's policy with guaranteed replacement cost or an extended replacement cost,your personal property will be replaced even if it costs more than policy limits.

Question

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Homeowner's policies with guaranteed replacement cost or extended replacement cost provide coverage for the full cost of replacing your home and personal property, even if it exceeds the policy limits. This means that if your personal property is damaged or destroyed, the insurer will pay to replace it in full, regardless of the policy limit.

If You Purchase a Homeowner's Policy with Guaranteed Replacement Cost