How Much Homeowners Insurance Coverage Do You Need?
You can determine the value of your personal property based on its actual cash value, which is the replacement cost of the item minus depreciation. Alternatively, you can purchase replacement coverage, which determines value based on the cost of replacing the item without deducting for depreciation. The replacement value, however, is limited to a maximum dollar amount. If you want to purchase coverage beyond the maximum dollar amount, you can purchase extended replacement coverage. How should you select a company and agent? When you are ready to select an insurance company and agent, consider the following: • Price of the policy: Your State Insurance Commission may publish a guide listing the different insurance companies’ charges for different policies in various parts of your state. You may find some very different prices. • Service: Ask for referrals from family, friends, and co-workers. You can also check references for various agencies with your State Insurance Commission. Judge t
