IRWIN KRAMER: If you lose your home, you need to make sure you have enough money to build it back.
JOHN DOETZER: What you want to do is determine what the replacement value of that home is and insure it for its replacement value. If it is a 30-year-old home, you want a replacement value equal to what it could cost you today to rebuild a dwelling of like kind in quality, so replacement cost is the valuation that we what to make sure is on your policy.
IRWIN KRAMER: If all insured for is the actual cash value of your house today, the chances are pretty good you are not going to have the cash to get back into your house should you ever lose it.
JOHN DOETZER: You want to make sure that you purchase a policy with guaranteed replacement cost coverage. The feature I like the best is one that does not have a limit on the multiple of the replacement cost that they will pay, another words, we call that an unlimited guaranteed replacement cost policy, that is your premiere coverage and one that we would recommend.
IRWIN KRAMER: If your home owners insurance company is not guaranteeing you enough funds to rebuild your house then you need to upgrade coverage.
JOHN DOETZER: So, if you insured your home for $250,000 three years ago and today it costs $350,000 to fully replace that home exactly as it exist today and the insurance company has not increased or you have not increased the coverage and a loss occurs today, the insurance company will come in and pay the $350,000. The only condition there is, that you have the proper guaranteed replacement cost endorsement on your policy.