Inflation Guard Coverage

Inflation Guard Coverage is a type of insurance add-on that helps protect you from the increasing costs of repairing or replacing your property due to inflation. When you purchase an insurance policy, the coverage amount is usually based on the current market value of your property. However, as time goes on, the value of your property can increase due to inflation. This means that if you were to experience a loss, the amount your insurance company would pay out might not be enough to cover the higher costs you would face to repair or replace your property. That’s where Inflation Guard Coverage comes in. With this coverage, the value of your property is adjusted annually to account for inflation. This ensures that your coverage amount keeps pace with the rising costs of materials, labor, and other expenses associated with repairing or replacing your property. For example, let’s say you had a fire in your home and the cost to rebuild it was $300,000. If you had Inflation Guard Coverage, and the inflation rate that year was 3%, then your coverage amount would be increased to $309,000 to account for the higher costs. Inflation Guard Coverage provides you with peace of mind, knowing that your insurance coverage will keep up with the changing economic landscape and help you recover fully from any unforeseen events.