PLCaliforniaeasy
In the California homeowners market, an 'Extended Replacement Cost' (ERC) endorsement typically increases the Coverage A dwelling limit by what range above the stated limit at the time of loss?
A5% to 10% above the listed Coverage A dwelling limit at the time of the covered loss
B200% to 300% of the stated Coverage A limit, providing essentially unlimited rebuild funds
25% to 50% (commonly marketed as 125%-150% of Coverage A)
DNo additional dwelling amount at all — the ERC endorsement simply waives the policy deductible
Why this is the answer
Sections 10101.2, 10102, and 10103 of the Insurance Code govern how replacement-cost coverage is described and disclosed in California, and the market has standardized ERC endorsements that pay 25% to 50% above the listed Coverage A limit. ERC is distinct from 'Guaranteed Replacement Cost,' which has no cap, and from straight Replacement Cost, which is capped at the policy limit. After the 2017-2019 wildfire seasons, CDI bulletins reinforced disclosure that ERC is a buffer, not a guarantee.
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