Endorsements & Optional CoveragesQuestion 445 of 474
The inflation guard endorsement protects an insured by:
a.Raising the limits during the term
b.Guaranteeing new-for-old on contents
c.Paying claims above the Coverage A limit
d.Waiving the deductible on a total loss
Explanation
Inflation guard raises the limits of insurance automatically through the policy term, in small steps, so that Coverage A keeps pace with rising construction costs instead of drifting below what a rebuild would cost. It works inside the limits rather than above them, so the answer describing payment beyond the Coverage A limit is wrong. Replacement cost on contents comes from a separate endorsement.
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Related questions on this topic
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