Can the second home I bought months before the wildfire become my replacement home for extended replacement reimbursement? P B asked 10 months ago
Can the second home I bought months before the wildfire become my replacement home for extended replacement reimbursement?

Or does the replacement home definitely have to be bought after the total loss of our primary residence? I can’t find the law about this.

The second home is now our primary residence. I need to receive my extended replacement cost on my destroyed home and hate to buy another property if I don’t need to.

I don’t know whether this matters, but I obtained this second property partly as inheritance and partly with my own added funds to pay for it. It is much more expensive than my destroyed primary residence.

Thank you very much for any information about this!

1 Answers
Jaclyn Conover Jaclyn Conover Expert answered 10 months ago
1 Vote Up Vote Down

The specifics of insurance policies can vary, so it’s important to consult your insurance provider and review the terms and conditions of your policy to get accurate information. However, in most cases, the replacement home for extended replacement reimbursement typically needs to be purchased after the total loss of your primary residence.

The purpose of extended replacement reimbursement is to provide coverage that goes beyond the policy’s limits, allowing you to rebuild or replace your home even if the costs exceed the policy’s maximum coverage. The intention is to restore you to a similar living situation as before the loss occurred.

If you purchased a second home before the wildfire and it was not intended as a replacement for your primary residence, it is unlikely that it would qualify for extended replacement reimbursement. Again, it’s crucial to check the specific terms of your policy or consult your insurance provider for accurate information and guidance regarding your situation.