We certainly hope that you will never have to deal with damaged or destroyed property,
especially your home. Unfortunately, it happens, and it may happen to you. Are you sure
you have enough coverage? Think twice.
These are two common situations and along with them two affordable options that will help put
your mind at ease.
Extended dwelling coverage
Even though your current home might be insured for 100% of its replacement cost, this will
most likely differ from the actual market value. Your homeowner’s insurance policy may not
accurately cover the current cost of rebuilding your home. That is where extended dwelling
coverage comes into play; it helps to cover the change in construction costs that may
exceed your current policy limits.
Here is an example. Your home is affected by a hurricane and many properties are
destroyed. Because of the high demand for construction materials and labor costs, the prices
will likely increase by 20%. Therefore, instead of $150,000 (market value of your home), the
actual cost of reconstruction will be $180,000. If you have extended dwelling coverage, it
will make up this difference.
Law coverage
Also known as building ordinance. Building codes change as times pass and become
more rigorous. So, if your home is damaged and needs to be rebuilt or repaired, you are
required to follow current building codes- which means the cost will be much higher than
you anticipate. Luckily, you have law coverage as an option to save you thousands of dollars.
To add on to the previous example- if you have a 10% law coverage policy, you would get
an additional $15,000 to cover new building requirements. Without it, you will have to pay this
difference out of your pocket.
These two policies surely help cover gaps in coverage in case of an unforeseen event. More
importantly, they can be found for an affordable annual premium.
Don’t hesitate anymore, get your quote today.
Thanks for reading!
Farmers Mutual Insurance
749 Wilson Road, Newberry, SC 29108
803-276-1814
https://www.farmersmutualsc.com/