Inflation Guard
A policy feature that automatically increases your dwelling coverage limits annually to keep pace with rising construction costs.
Detailed Explanation
Inflation guard endorsements typically increase coverage by 2-6% each year, helping prevent underinsurance due to inflation in building material and labor costs. This feature ensures your coverage keeps pace with the actual cost to rebuild.
Practical Example
Thanks to the inflation guard clause in her policy, Jennifer's dwelling coverage automatically increased by 4% each year, ensuring she maintained adequate coverage even as construction costs in her area rose significantly over the five years she owned her home.
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