Why Talking to an Expert Matters More Than Ever
(And the Coverage Most Homeowners Don’t Realize They’re Missing)
By Lauren Dallas, Personal Lines Manager
Most people assume homeowners insurance works the same way everything else does: you buy a policy, you pay your premium, and if something bad happens, you’re covered.
But that assumption—while understandable—is where many homeowners get into trouble. Not all coverage is created equal. In some cases, the difference between being “insured” and being “properly insured” only becomes clear after a major loss, when it’s too late to fix it.
One of the most important roles we play as independent insurance professionals is helping clients understand what they’re actually buying—and just as importantly, educating them on what they may not even realize exists. We don’t think the average person should be expected to be an expert on the nuances of insurance coverage (any more than they are expected to be experts at law or medicine.) We believe strongly that, when shopping for insurance, it’s critical for homeowners to at least consult with an independent advisor before buying something they don’t fully understand.
One coverage in particular highlights why such conversation matters: guaranteed home replacement cost. While it might be often said, “What you don’t know won’t hurt you,” we’ve seen first-hand proof that this is not the case when it comes to catastrophic loss.
Why “Shopping for Insurance” Can Be Risky Without Professional Guidance
We understand why people shop their insurance, often looking for the “best deals.” Price matters. Everyone wants to be smart about what they’re spending.
The problem isn’t comparing quotes—it’s comparing quotes without fully understanding the coverage behind the numbers. When insurance is purchased online or through a direct carrier, the focus is often on monthly cost. Coverage details become sliders and checkboxes. And while that approach may feel convenient, it leaves out the most important part of the process: education.
Homeowners often assume that if their house is insured for a certain dollar amount and that this number reflects what it would cost to rebuild it. In reality, the insured amount is frequently misunderstood…and sometimes dangerously insufficient.
That’s why we don’t lead with price alone. We lead with conversations.
The Dwelling Limit Misunderstanding
One of the most common questions we hear is: “Why is my home insured for more than its market value?”
It’s a fair question—and a critical one.
Your dwelling limit is not based on what your home would sell for. It’s based on what it would cost to rebuild your home from the ground up after a total loss.
That includes:
demolition and debris removal
labor costs
material costs
code upgrades
specialized trades
In today’s environment, rebuilding costs have increased dramatically. Materials and labor fluctuate. Supply chains change. And in a major loss scenario, costs often exceed expectations.
Which brings us to the coverage many homeowners don’t realize exists—and often don’t realize they don’t have…
What Is “Guaranteed Home Replacement Cost?”
Guaranteed home replacement cost coverage does exactly what it sounds like: If your home is destroyed by a covered loss, the insurance company will pay whatever it costs to rebuild your home to like kind and quality, even if that amount exceeds your stated dwelling limit.
There is no cap.
For example, let’s say:
Your home may be insured for $450,000.
A total loss occurs.
The actual cost to rebuild is $1.1 million.
With guaranteed replacement cost coverage, the carrier pays the full rebuilding cost (minus deductible). Without it, you may be responsible for the difference.
That’s not all just hypothetical. It happens.
Extended Replacement Cost Isn’t the Same Thing
Some policies offer extended dwelling replacement cost coverage, typically adding an extra 25%–50% above the dwelling limit.
Using the same example:
$450,000 dwelling limit
50% extension = additional $225,000
Maximum payout = $675,000
That’s better than no extension—but it’s still capped. And in our hypothetical, in which the cost to rebuild is actually $1.1 million, it’s easy to identify the dangerous gap between coverage and cost.
For our part, when guaranteed replacement cost isn’t available through a carrier, our agency standard is to maximize extended replacement cost to the highest level offered. We don’t leave it to chance. And as independent agents and advisors, we have the ability to shop the coverage around, to find carriers that will offer guaranteed replacement cost coverage (something “captive” agents and online companies [like GEICO, for example] representing just one insurance carrier alone cannot).
What It Means to You That We Have an “Agency Standard”
This approach isn’t accidental. It’s how we do business.
We’ve developed agency standards because we believe clients shouldn’t have to guess what “good coverage” looks like. Our standards exist to ensure consistency, protection, and peace of mind, regardless of whether someone is a longtime client or a new prospect.
We are proud to be a coverage-centric agency. That means:
We don’t take shortcuts to hit a price.
We explain trade-offs clearly when they exist.
We require sign-offs when coverage is reduced.
We continually update our standards as new coverages become available.
When a client chooses a lower-cost option that reduces protection—such as moving from guaranteed replacement cost to extended replacement cost—we make sure they fully understand the difference and what may be at risk.
That’s not about selling more insurance. It’s about making informed decisions.
The Cost vs. Consequence Conversation
One of the most surprising things homeowners learn is how affordable some of these critical coverages actually are. In some cases, guaranteed home replacement cost coverage can cost less than $20 per year when added to a typical homeowners policy. When you compare that to the potential financial exposure—hundreds of thousands of dollars—the math becomes very clear.
Saving a few dollars in premium by reducing coverage can feel good today. But if a major loss occurs tomorrow, that savings can quickly turn into a devastating financial setback.
Insurance is meant to protect your future, not just your budget.
A Simple Question Worth Asking
Many people we speak with tell us the same thing: “No one has ever explained my policy to me like this before.” That’s the true value of a quick but critical conversation.
If you’re not sure whether your policy includes guaranteed home replacement cost—or how your dwelling limit was calculated—it’s worth asking. Not because something is necessarily wrong, but because understanding your coverage now is far easier than discovering gaps after a loss.
At Gompers Cornish & Barr, our goal is simple: to make sure you’re not just insured—but fully protected.