Famous Home Replacement Cost Value And Insurance News References. Guaranteed replacement cost will pay for any overages if a covered peril destroys your home. Replacement cost insurance pays you the full replacement cost of an item you are making a claim on.

Insurers also have a minimum requirement for replacement cost coverage. If you take our equation for calculating a home's replacement cost: So, if the cost of replacing lost or damaged items exceeds your coverage limit, you may have to pay for the difference yourself.