Your home is likely your most valuable asset, and you want to make sure you protect it with the right insurance. Did you know the cost to replace your home could be much more than it cost to build — and you could be on the hook for the difference?

Whether it would cost more to replace because you’ve made major upgrades that increased the value of your home or simply because the price of building materials and labor has increased, you’ll need to come up with the additional funds or find ways to reduce costs. That’s why guaranteed replacement cost coverage, offered by insurers like Erie Insurance, is so important. If you experience a total loss of your home, this coverage allows you to rebuild it back to its previous size and specifications at today’s cost, subject to certain conditions.

To give you a better idea of the importance of insurance coverage that helps you protect the investments you make, consider the top three remodeling projects for the interior and exterior offering the best return on investment.


1. Refinishing hardwood floors


The main reasons consumers are refinishing hardwood floors is to upgrade worn-out surfaces and to improve livability, according to the 2022 Remodeling Impact Report by the National Association of REAL-TORS Research Group. At 147%, it also tops the list for the No. 1 interior project for what homeowners can recover on the cost of the project if they sell the home, based on estimates from NARI Remodelers and REALTORS.

2. Installing new wood flooring

The average cost recovered for this project is 118%. Surprisingly though, it was the No. 1 feature homeowners surveyed by Erie Insurance say they got when they bought their home but wouldn’t choose again.

When asked why, reasons ranged from feeling the feature was not worth the money, to being tired of it or feeling the feature is outdated now.

3. Insulation upgrade

This is a popular project if you’re looking to improve energy efficiency, and at 100%, it has a high cost recovery value.


1. Roofing


Offering a 100% return on investment, most consumers upgraded their roof due to worn-out surfaces, finishes and materials.

2. Garage door

The top reason homeowners replace their garage door is having plans to sell their home in the next two years, according to the 2022 Remodeling Impact Report. This project may be well worth the cost, offering 100% returns.

3. Fiber cement siding

With 86% recovery on the cost of the project, upgrading siding due to worn-out surfaces, finishes and materials is a solid investment.

If you’ve made any recent updates, talk to your insurance agent to make sure you have the proper coverage. To learn more about guaranteed replacement cost coverage, visit


This summer, make home upgrades wisely. For peace of mind, be sure to protect the investments you make in your home.

This article is courtesy of StatePoint Media.