There are two types of coverage for your personal property – Replacement Cost and Actual Cash Value. If your TV is destroyed in a fire and you have a Replacement Cost Policy the insurance company pays to repair or replace your TV with a new set similar to the damaged one. If you have an Actual Cash Value policy, the insurance company pays to replace your TV based on what they determine the value to be minus depreciation.
For very expensive items, like jewelry, diamonds, art work, etc. you will need to purchase extra coverage, which is called an Endorsement. Your Homeowners Insurance may exclude coverage on certain items like fine art collections. When you purchase something new and your not sure, call your Insurance Agent to get advice on what type of coverage you need.
Keeping inventory updated is important. To make it easier for your insurance company to pay your claim, have photos and/or a video of the contents of your home. Keep receipts of new items as they are purchased. Make copies of the receipts as well as the serial numbers of your property and keep them in a safety deposit box, online, or with a family member for safe keeping.
Do all you can to keep your property safe from fire, damage, and burglary. Smoke detectors, maintaining your electrical system in your home, deadbolt locks and burglar alarms are some ways to protect your property. For doing all you can to protect your property, you may be eligible for a discount on your Homeowners Insurance.
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