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Guaranteed Replacement Cost covers the cost to repair or replace your home after a covered loss, even if the cost exceeds your policy limit. Your insurance company may provide you with a replacement cost valuation for your home. When insured at this amount, you will be provided Guaranteed Replacement Cost. It does not consider your homeamp;#39;s market value, purchase price, or mortgage loan. After a covered loss, this coverage will pay to repair or replace the home with materials of similar kind and quality and for like use. The payment is subject to limitations and exclusions. If your policy does not include guaranteed replacement cost coverage, you will incur out-of-pocket expenses if repair or replacement costs exceed your policy limit. For example, if your policy has a Coverage A dwelling limit of five hundred thousand dollars and cost of repairs is six hundred thousand dollars, your out-of-pocket expense is one hundred thousand dollars. With guaranteed
