The recent bouts of severe weather around the country have most of us thinking about one thing: our homes. All of us are contemplating what we would do if something were to happen to our homes. We’re wondering what our homeowner’s insurance would cover too! Do you know what is in your homeowner’s insurance policy?
When talking about different kinds of coverage, your belongings, too, receive different types of coverage than the rest of your home! Usually, the coverage is either actual cash value or replacement cost.
Actual cash value only pays for the actual cost of the lost item, but if you were to lose your very old laptop, your payout would be based on the value of a very old laptop! Replacement cost, in contrast, pays for the cost of purchasing a brand-new laptop—be sure you know which is which when deciding which kind of coverage to choose!
But understanding which policy you have is only the beginning—you must also discover what kind of coverage it provides! Maybe it’s time to review it and to ensure that you have the coverage you need!