Guaranteed Replacement Cost (GRC)

Definition#

Guaranteed Replacement Cost pays the full cost of rebuilding without an upper limit, even if reconstruction costs exceed Coverage A by more than 50%. GRC was widely available pre-2018 but many carriers withdrew it from California after the wildfire losses. Some carriers still offer it in CO, Pacific Northwest, and other markets, often with strict underwriting (recent appraisal, no claim history, replacement-cost-current Coverage A).