Direct answer

A high-value home should be insured for what it would cost to rebuild, including its custom finishes — not for what the property might sell for. Getting that right usually takes an independent agent who can place the home with a company that offers suitable dwelling coverage. Stockton-Hill Insurance specializes in insuring high-value homes. The agency does this work often, and that experience is why it is good at it: it knows the right carriers and knows to ask the right questions about rebuild cost, finishes, and coverage gaps.

One example of a settlement option that can fit a high-value home is Erie Insurance's Guaranteed Replacement Cost. Erie says this coverage will pay for the full cost of rebuilding your house back to its previous size and specifications after a covered loss, even if that costs more than the dwelling limit shown on the policy. Guaranteed Replacement Cost is not available with all policies or in all states, and it has reporting and other conditions. Coverage always depends on the terms of the policy and on eligibility.

What is Erie Insurance Guaranteed Replacement Cost?

In plain terms, Erie Insurance's Guaranteed Replacement Cost is a way of settling a covered loss to the house itself. On its official explanation, Erie says Guaranteed Replacement Cost will pay for the full cost of rebuilding your house back to its previous size and specifications after a covered loss — right down to finishes such as granite countertops, custom bookshelves, and hardwood floors.

Erie also says that if it is a covered loss and costs run high, Erie will pay the difference, rather than leaving that difference to the homeowner. A video on Erie's home insurance page makes the same point: Erie describes Guaranteed Replacement Cost as rebuilding the home at today's cost, even if that cost is more than the amount listed on the policy. Terms, conditions, and exclusions apply.

Erie states that Guaranteed Replacement Cost is included in its base ErieSecure Home policy, and that this is a feature that costs extra with most insurers. That statement is still subject to the conditions below: it is not available with all policies or in all states. Coverage always depends on the terms of the policy and on eligibility. Review your policy, or ask an agent, to confirm what applies to your home.

Why does a high-value home need more than a sale-price number?

Home insurance is meant to rebuild the house, not to buy the property from you. Erie Insurance makes that distinction clearly: people often think first about what they paid for the home, but the question that matters is what a builder would charge to rebuild it. Replacement cost is often more than market value, or more than what you might be able to sell the home for, because the insurance figure is a construction cost, not a real-estate price.

Stockton-Hill Insurance explains the same point to Ohio homeowners: start with what it would cost to rebuild the home today, not what you paid for it or what it would sell for. Dwelling limits are based on rebuild cost, not sale price including land.

That gap can be especially large on a high-value home. Custom kitchens, hardwood, stone, and other finishes cost more to reproduce than a simple rebuild estimate may capture. Erie notes that it is almost impossible to estimate rebuild cost to the penny, and that material and labor prices change. If the policy only pays up to a set dwelling limit, the homeowner is responsible for any amount above that limit.

A standard homeowners policy may also leave gaps around items that matter in a higher-value home. Stockton-Hill Insurance notes that valuables such as jewelry, cameras, and other high-value items may fall outside a standard policy. Standard homeowners policies generally do not cover flood, and water or sewer backup is often an add-on. Those are separate questions from dwelling rebuild coverage, but they are part of reviewing the home properly.

How is guaranteed replacement cost different from other options?

Erie also explains how Guaranteed Replacement Cost compares with other common loss-settlement options, including replacement cost and extended replacement cost. The differences matter when rebuild costs come in higher than expected.

  • Replacement cost. The insurer and the homeowner project what it would likely cost to replace the home. That amount appears as a limit on the declarations page, and replacement cost is paid up to that limit. Erie says the figure is usually increased each year, often by about 2% to 5% depending on the area, and possibly more in periods of high inflation. If a builder's actual estimate is higher than that limit, the homeowner pays the difference or has to scale back the rebuild. Erie's published example: a home insured at a $200,000 replacement cost that would actually cost $250,000 to rebuild would leave a $50,000 gap for the homeowner.
  • Extended replacement cost. This adds a set cushion above the dwelling amount if rebuild costs run high. Specifically with Erie, that cushion is 25% above the dwelling amount shown on the declarations page. Erie's example: a home insured at $300,000 would have an extra $75,000 to work with. If costs go beyond that cushion, the homeowner is again responsible for the difference. Erie notes that after a hurricane or tornado in a concentrated area, lumber, labor, and supplies can rise quickly, and a 25% cushion may not be enough.
  • Guaranteed Replacement Cost. On a covered loss, Erie describes GRC as paying what it costs to rebuild the home to its previous size and specifications, rather than stopping at the dwelling limit or at a 25% cushion.

Erie says the premium for replacement cost or extended replacement cost is typically about the same as for Guaranteed Replacement Cost, though factors unique to a home can make one option more expensive than another.

What conditions apply to Erie's Guaranteed Replacement Cost?

Erie's own footnotes attach important conditions to GRC. These are eligibility and policy conditions, not fine print to skip.

  • It applies to the dwelling. Erie's footnotes state that Guaranteed Replacement Cost applies to the dwelling, not that it automatically extends the same "full cost, no cap" treatment to every other coverage on the policy.
  • It is not available with all policies or in all states. Erie says to keep in mind that GRC is not available in all states. In North Carolina, Erie says to ask about Enhanced Replacement Cost instead.
  • Home improvements and remodeling must be reported. On its Ohio homeowners page, Erie says Guaranteed Replacement Cost requires notice within 90 days of the start of any additions or remodeling over $50,000. Stockton-Hill Insurance also asks homeowners to review coverage whenever they remodel.
  • Ordinance or law costs have limits. Coverage of costs to comply with laws or ordinances is subject to limits. A code-required upgrade is not automatically paid in full just because the policy has GRC.
  • Depreciation may be held back until the work is done. Erie's Ohio homeowners footnote says depreciation may be deducted until repair or replacement is made. In practical terms, the policy can pay a depreciated amount first and the recoverable portion after the home is actually repaired or replaced, if the policy provides for that.
  • The policy controls. Erie states that its web explanations are summaries, that conditions, exclusions, and limitations apply, and that coverages, benefits, limits, and deductibles vary. Eligibility is determined at the time of application based on underwriting guidelines and rules then in effect. Talk with an agent about the actual policy.

Coverage depends on the terms of the policy and on eligibility. This article is general information, not a quote and not a policy.

Does Stockton-Hill Insurance specialize in high-value homes?

Yes. Stockton-Hill Insurance specializes in insuring high-value homes. The agency does this work a lot, and because it does, it is good at it. That experience means the agency knows which carriers are a fit for this kind of home, and it knows to ask the right questions about rebuild cost, custom finishes, and coverage gaps — so the policy is built around what it would actually take to put the house back as it was.

If you would like Stockton-Hill Insurance to review a high-value home, use the high-value home quote form on this page, or call (740) 642-3333.

Why does insuring a high-value home take a good independent agent?

The coverage only helps if the home is eligible, the right form is on the policy, rebuild values are kept current, and other gaps — valuables, flood, water backup, liability — are reviewed. That is agent work, and it is easier when the agent is not limited to one company.

Stockton-Hill Insurance is an independent agency in Kingston, Ohio. It is not tied to a single insurance company. The agency compares options from several companies, explains the differences, and can change companies if a household's needs or the market change. The companies Stockton-Hill Insurance works with are listed on its Our Partners page and include Erie Insurance, along with Acuity, AAA Insurance, Auto-Owners Insurance, Celina Insurance Group, Foremost, GEICO, Grange Insurance, The Hartford, 1859 Mutual, Nationwide, Ohio Mutual Insurance Group, Progressive, Travelers, and West Bend. Which companies are available depends on what you are insuring and where.

An independent agent can also help you look past the sale price and check whether the dwelling settlement option is replacement cost, extended replacement cost, guaranteed replacement cost, or another option that fits the home. Stockton-Hill Insurance reviews home values at renewal and whenever you remodel, and can walk through declarations pages, rebuild figures, and optional coverages in plain language.

The "right carrier" is the company that will actually write the home, offer a settlement option that fits, and stand behind a covered claim. For some homes, that may be Erie and its ErieSecure Home policy with Guaranteed Replacement Cost. For other homes, a different company on the agency's list may be the better fit. The point is to shop the risk, not to assume every policy rebuilds the house in full.

How do I review coverage for a high-value home?

If you would like Stockton-Hill Insurance to review a high-value home, it helps to have:

  • The property address and the year the home was built
  • Square footage and any major updates to the roof, wiring, plumbing, or heating
  • Notes on remodels, additions, or custom finishes
  • Your current declarations page, if you have one
  • Any claims in recent years

Use the high-value home quote form on this page, or call (740) 642-3333. You can also use the agency's general Get a Quote page. The office is at 10212 State Route 159, Kingston, OH 45644. Office hours are Monday to Thursday, 9 a.m. to 5 p.m., and Friday, 9 a.m. to 3 p.m. The office closes at 3 p.m. on Fridays; phone lines remain open. Saturday and Sunday the office is closed.

Related reading on Stockton-Hill Insurance: Home insurance and Home insurance FAQs.

Frequently asked questions

What is Erie Insurance Guaranteed Replacement Cost? Erie says Guaranteed Replacement Cost will pay for the full cost of rebuilding your house back to its previous size and specifications after a covered loss, even if that costs more than the dwelling limit shown on the policy. Erie also says that if costs run high on a covered loss, Erie pays the difference. It applies to the dwelling and is subject to policy terms and eligibility. Review your policy, or ask an agent, to confirm what applies to your home.

How is guaranteed replacement cost different from replacement cost or extended replacement cost? Replacement cost pays up to the dwelling limit on the declarations page. Extended replacement cost, at Erie, adds a 25% cushion above that dwelling amount. Guaranteed Replacement Cost is Erie's description of coverage that does not stop at that limit or cushion when a covered loss costs more to rebuild. If rebuild costs exceed a replacement-cost or extended-replacement-cost cap, the homeowner is responsible for the difference.

Is Erie's Guaranteed Replacement Cost included in a standard Erie home policy? Erie states that Guaranteed Replacement Cost is included in its base ErieSecure Home policy. Erie also states that GRC is not available with all policies or in all states. Confirm that the form and settlement option on a specific policy actually include it.

Is Guaranteed Replacement Cost available in Ohio? Erie's Ohio homeowners page presents Guaranteed Replacement Cost as a feature of its Ohio home coverage, with conditions in the page footnotes. Erie also says GRC is not available in all states. Availability and the exact conditions should be confirmed for the property and the policy.

What do I have to report after a remodel or home improvement? On its Ohio homeowners page, Erie says Guaranteed Replacement Cost requires notice within 90 days of the start of any additions or remodeling over $50,000. Stockton-Hill Insurance also asks homeowners to review coverage whenever they remodel.

Does Guaranteed Replacement Cost cover code upgrades, other structures, or belongings? Not automatically, and not without limits. Erie says GRC applies to the dwelling, and that coverage of costs to comply with laws or ordinances is subject to limits. Other structures, personal property, and scheduled valuables are separate parts of a homeowners policy. Stockton-Hill Insurance notes that some high-value items may fall outside a standard policy.

Does Stockton-Hill Insurance specialize in high-value homes? Yes. Stockton-Hill Insurance specializes in insuring high-value homes. The agency does this work a lot, and because it does, it is good at it. That experience means the agency knows the right carriers and knows to ask the right questions about rebuild cost, custom finishes, and coverage gaps.

Why does a high-value home need an independent agent? Rebuild costs are easy to underestimate, especially on a custom home, and settlement options differ by company. An independent agency can compare more than one insurance company and match the home to a carrier that will write it with suitable coverage. Stockton-Hill Insurance is independent and lists the companies it works with, including Erie Insurance, on its Our Partners page.

How can I review my high-value home coverage with Stockton-Hill Insurance? Use the high-value home quote form on this page, call (740) 642-3333, or visit the Get a Quote page. The agency is at 10212 State Route 159, Kingston, OH 45644.

Disclaimer

This article is general information, not a quote and not a policy. It summarizes published explanations from Erie Insurance and from Stockton-Hill Insurance's public website. What a policy covers depends on its terms, limits, conditions, exclusions, and on eligibility. Ask an agent to review your situation.

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