Homeowners Insurance Lowdown

Fine, you’ve insured your home and are confident that if a disaster strikes, you can rebuild your home… or can you? Do you know how your insurance company values your belongings if disaster were to strike? And more importantly, will the valuation be enough to cover your possessions.

There are two common ways to determine the value of damaged property: Actual Value and Replacement Value. State regulations determine whether your insurance company uses Actual or Replacement value to process claims. This means it all boils down to where you live, as your insurance carrier will comply with the regulations in the state where you live.

In case you have moved residence recently but retained your insurer, it is important to find out if the state you now stay in has Actual Value or Replacement Value in effect. Don’t make the mistake of assuming that what was in effect in one state is the same in another.

--
Did you enjoy this post?

« Know Your Perils | Main | Why Do I Need Insurance? »