Insurance expert witnesses may write reports and opine on property insurance, homeowner’s insurance, and insurance companies. In the wake of homes destroyed throughout the country, attorneys at Alvarez & Barbara, LLP, explain replacement cost and extended replacement cost:
Unfortunately, many of those homeowners will soon discover that their insurance won’t cover all of their rebuilding cost.
Replacement cost. This covers the cost of repairing or replacing your home, based on a set dollar amount. However, one of the problems with this coverage is that it often times does not reflect the increase in the cost of construction and labor since you took out your policy in your community. If your community is destroyed by a natural disaster, then that means that there could be higher demand for such construction and labor needs, and that will inevitably push up the cost of repairing and replacing your home.