Choosing replacement cost insurance on your home’s contents helps restore the comfort of your home in the event of a loss. It could be worth hundreds, even thousands of dollars to your family.
Replacement Cost Insurance
Most homeowners insurance policies cover your personal property for its actual cash value. You may prefer to cover your contents for the cost to replace them – new for old – by requesting replacement cost contents coverage.
What is Actual Cash Value?
Actual Cash Value is replacement cost less depreciation. The actual cash value of your household property is what the items are worth at the time of a loss. For example, a flat screen television usually lasts about 10 years. If you own a five-year-old TV, about half of its life is used up. While you would pay $1,000 to replace it with a new one, its actual cash value is around $500. Homeowners insurance pays actual cash value (after the deductible) for your damaged or stolen TV.
Replacement Cost Contents Coverage is Available
With replacement cost contents coverage, there is no deduction for depreciation. Your homeowners insurance pays the full replacement cost of a new item of the same kind and quality, less the policy deductible.
Contact The Andrew Agency
The Andrew Agency works with several insurance companies who provide Replacement Cost homeowners insurance and replacement cost contents coverage. Contact The Andrew Agency at (804) 320-2886 or www.theandrewagency.com