What is Contents Replacement Cost Coverage?
When you have an insurance claim related to your home or personal belongings you will want to replace your destroyed valuables as completely as possible. However, your homeowner’s insurance policy will usually only cover the actual cash value (ACV) of the items destroyed.
For example, if you have a 5-year-old TV, your insurance policy will factor the television’s depreciation into the payout, leaving you with not enough money to replace the destroyed item with a comparable new one. However, if your policy includes the contents replacement coverage endorsement, the insurance company will give you the amount needed to replace the TV with a new comparable replacement.
Contents replacement cost coverage can be purchased as an endorsement on your homeowner’s policy.
Be sure to speak with your knowledgeable broker at Tegner-Miller Insurance Brokers to make sure your policy includes this valuable coverage. We can be reached at 310-828-9662.