Hey Everyone,
I'm fairly new to insurance, I just came across a prospect who insists that he has a "guaranteed replacement cost" for home insurance. He explained to me that if his dwelling amount is only at 250,000 and it took 1 million dollars to rebuilt then the company will pay out for the loss. However, I'm with a captive and we provide 125% for the dwelling. Does this coverage still exist, how would these companies profit if they have the guaranteed replacement cost.
What are the down side to this type of coverage. How can I convince him to switch over to a policy with 125%. He is just worried about the coverage amount and wants assurance that his home will be rebuilt no matter what?
Any suggestions?
I'm fairly new to insurance, I just came across a prospect who insists that he has a "guaranteed replacement cost" for home insurance. He explained to me that if his dwelling amount is only at 250,000 and it took 1 million dollars to rebuilt then the company will pay out for the loss. However, I'm with a captive and we provide 125% for the dwelling. Does this coverage still exist, how would these companies profit if they have the guaranteed replacement cost.
What are the down side to this type of coverage. How can I convince him to switch over to a policy with 125%. He is just worried about the coverage amount and wants assurance that his home will be rebuilt no matter what?
Any suggestions?