Replacement cost coverage is a type of property insurance that pays to repair or rebuild a home using similar materials at current market prices, without deducting for depreciation. For real estate investors, this ensures you won’t be underpaid if your rental suffers major damage. It’s especially important for new-construction homes, where building costs can rise quickly. Meridian recommends working with insurance agents who understand investment properties and can help you secure appropriate replacement cost coverage to fully protect your asset and cash flow.
