What’s considered personal property? Personal property are items you take with you when you move from house to house…. Clothes, TV, electronics, furniture, pots and pans, (the things you put in the moving truck). Personal property you own can be covered under a Florida home owners policy (Coverage C- Personal Property). In addition to how much your chose to buy for these items you can select from two choices on how to cover personal property –actual cash value and replacement cost (the better of the two).
Our first recommendation is too look around and add up how much you personal property (contents) you have in your home. You may be paying too much for homeowners insurance Jacksonville FL, simply because you are over insuring your personal property.
The second recommendation that we have is to know the difference between actual cash value and replacement cost. Actual cash-value coverage reimburses you for the cost of your damaged property at the time of the claim, minus depreciation for the fact that your items are used. Replacement cost coverage reimburses you for the cost of you a brand new item that is just like the damaged item. Actual cash value policy can result in a lower claim payout than you expect. Here’s a real life example: You purchased a brand new couch for $1,000 five years ago. Actual Cash value coverage, takes into account that the couch has been used for five years, and it will pay for the value of a five year old used couch. Most of the time no where near the $1,000 that it would cost to go buy another one. On the other hand, Replacement cost on your couch, will give you exactly enough money to go and buy a brand new same brand name couch without any consideration that the one damaged is used. It generally will pay the $1,000. Replacement cost coverage will reimburse the full value of an item based on the cost of purchasing a new one.
Now which one is a better value for you? If you are only concerned about insuring your home because money is tight and the bank is getting ready to force place coverage, or if you would never replace the items if it gets damaged – then go ahead and consider a actual cash value policy. We always recommend that you select replacement Cost on your contents home policy in Orlando. The upfront cost is greater on a replacement cost, but you are more likely to receive accurate compensation for your possessions. Replacement Cost feature will be a much better value in the long run.