The Basics of Personal Property Coverage
Most homeowners and renters policies allow policyholders to increase the limits on some or all of these categories with endorsements and additional premiums. Policyholders may also elect to “schedule” any items whose value exceeds the sub- limits assigned to their category. This is also done with endorsements and paying additional premiums.
For all of these reasons, it’s important for you to talk to your independent insurance agent about the right contents insurance endorsements for your homeowners policy. Finding that you have coverage gaps after a claim can be financially devastating. You can prevent this from happening by asking questions during the quote and application process.
Deciding Between Actual Cash Value and Replacement Value
The decision on whether to base your personal property coverage on replacement cost or actual cash value is always made at the time of application.
If you prefer to have claims resolved in a way that allows you to replace your contents on a new-for-old basis, then replacement cost should be your choice.
If you only expect the cash value at the time of a loss (depreciated value), then you should choose actual cash value coverage and save a little money on your insurance premium.
Working with Your Agent to Get the Right Coverage for Your Valuables
Now that you have an understanding of the different methods for obtaining contents insurance, it is time reach out to your Imperium Insurance agent and discuss your property.
Imperium Insurance agents have access to multiple insurance companies and policy types and can compare quotes to find a policy that will fit your needs and budget. They are prepared to take the time to help you assess how much coverage you need for your personal property. Contact your local agent today.