Is Your Personal Property Insured for Actual Cash or Replacement Value?
Posted by: bryan in Untagged on
Nov 30, 2009
Making sure your insurance company will do what you expect it to do if you suffer a covered loss is vital in a homeowner's insurance policy. The most important thing an insured can do is verify that their homeowner's insurance policy is covering their personal property for "Replacement Value" and not just the actual cash value of the property. Doing this can save the insured headache and loss in the future.
For example, if you have an actual cash value policy and your laptop, which was purchased in 2008, is stolen, you will be insured for the value of a 2008 laptop minus the depreciation for the 2 years you had the laptop. If you had a replacement cost policy you would be covered for a new laptop to replace the stolen one.
Check with your insurance agent if you are unsure as to whether your homeowner's policy does this, or if you have any further questions.
