What kind of property coverage is right for you?
April 18 2018
Carefully evaluate these two types of coverage to ensure you're well-informed.
Actual Cash Value
Pro: These policies often have less expensive monthly premiums, so you could insure expensive items for less.
For example, if you had a wreck and wanted to replace the car you bought five years ago, you'll probably be accepting payment for what a vehicle of that make and model would fetch now, minus your deductible and wear and tear.
Pro: You can replace older items for what they would cost to purchase new.
Con: This option tends to be more expensive. Also, you must replace all items claimed to recoup the payout and you can't use the money for other things.
Keep in mind that multiple factors come into play when determining how an insurance claim will be paid out, but by learning about your options you can set yourself up for success. Please reach out with any questions you have.