Why are contents replacement cost coverage and building replacement cost coverage so important?
Replacing your home and your furnishings, clothing and other possessions could be very expensive. Contents replacement cost is a critical part of your homeowners coverage. Why? If your television is stolen, your standard homeowners policy would cover the purchase price less depreciation applied to the stolen set. Under a policy with replacement cost coverage you are covered for the cost to replace the set. You do not have to worry about depreciation or inflation. Most of your personal property may be covered. However, antiques and rare items are subject to the actual cash value provisions of the policy. Building replacement cost coverage works the same way. With this coverage, your home will be fully repaired or rebuilt without depreciation up to the coverage limit. (Increased costs to re- build as a result of ordinances or laws must be insured separately.) Policies also cover loss of use of your residence premises. If you are unable to occupy your home because of a covered loss, this
Related Questions
- What kind of coverage is available for water damage to my home or building and its contents as a direct result of seepage in the basement?
- Why are contents replacement cost coverage and building replacement cost coverage so important?
- What is the difference between Building Coverage and Contents Coverage?
