We'd like to switch our auto insurance from Company A to Company B because the premiums are significantly lower. Because both companies offer discounts for bundling home and auto, it might make sense to move out homeowner's insurance to B as well. At first glance the home quotes were nearly the same cost and so we just about made the switch. But then I looked closer and noticed that the dwelling replacement was much lower for Company B.
Company A's policy
We are currently insured under this policy.
The dwelling replacement cost is approx. $350k
Company B's policy
The dwelling replacement cost is approx. $275k. But, a benefit listed further down the policy reads "Dwelling Replacement Cost - 150%" The agent told me that we would actually have more coverage because up to 150% of the Dwelling Replacement Cost could be paid out if the house were destroyed. Is this information accurate, and why do they do it this way?
NB - I do see other similar questions. Before you vote this as a duplicate, consider the question as "is the 150% replacement cost the same as a 50% higher replacement cost?" (Or, would we need some new extraordinary burden of proof to exceed the replacement cost?)