Home Insurance: guaranteed replacement vs extended replacement

[PenguinOrange]

Trying to decide on home insurance for a new house between guaranteed replacement vs extended replacement.

I've read that guaranteed replacement may not cover full building code so if your house needs more to meet current codes vs when it was built it would be extra.

Wondering if it's new construction then an extended in te range of 125% to 150% seems sufficient as everything is up to code right now. Later can reasses and see if it's under insured and adjust.

What do must people do?

Thanks!

 

[lucky760]

I was faced with the same consideration when going over my quote with AAA.

If the cost wasn't $15 more per month, I'd probably be more willing to consider upgrading to guaranteed replacement. I know it isn't really much more to pay, but I think it's just too unlikely that the place will be irreparably damaged before I sell the place and move away, so I'm opting for the cheaper extended replacement coverage.

Besides, for the guaranteed package to really help with inflation, I imagine you'd have to be in the place for many, many years before it burns down.

Maybe not scientific, but that's my thought process at least.

 

[changm55]

i padded my coverage by about 40k and went with standard extended replacement so came out to about 50k above the suggested coverage... this came out cheaper then having the suggested coverage with gauranteed replacement... lol... didnt want to spend anymore money then i had to on insurance and figured if i need, i can always adjust the coverage later on if i need to

but yeah... depends on ur quotes... gotta compare to see if the gauranteed replacement is worth it or not