North FLA Bacon G-Force ☰ ˟
Logo
North FLA: 904-551-0627 Google Review Button
Bacon: 904-744-5144 G-Force: 904-388-8100

For Information On Licensing/Continuing Education, Click Here

  • Home
  • Products
    • Automobile
    • Business & Commercial
    • Business Owners (BOP)
    • Classic Car
    • Commercial Auto
    • Flood
    • Homeowners
    • Life
    • Motorcycle
    • Toy Vehicles
    • Umbrella
  • Get a Quote
    • Automobile
    • Business & Commercial
    • Homeowners
    • Life
    • Recreational Vehicle
  • Blog
  • Make a Payment
  • Resources
    • Refer a Friend
    • Important Links
    • Insurance Glossary
    • Our Partners
  • About Us
    • About North FLA Agency
    • Our Locations
    • Employee Directory
    • Customer Testimonials
    • Privacy Policy
  • Contact
    • Contact Us
    • Join our Newsletter
Auto

Auto

We browse through a wide variety of coverages and find the right one for you.

Learn More
Home Icon

Home

We browse through a wide variety of coverages and find the right one for you.

Learn More
Business Icon

Business & Commercial

We browse through a wide variety of coverages and find the right one for you.

Learn More
Life Icon

Life & Retirement

We browse through a wide variety of coverages and find the right one for you.

Learn More
Toy Icon

Toys

We browse through a wide variety of coverages and find the right one for you.

Learn More
Home > Blog > What is Replacement Cost Contents Insurance?
WEDNESDAY, OCTOBER 21, 2020

What is Replacement Cost Contents Insurance?

Single story family home with palm trees in front yard

When you buy homeowners insurance, you will want to include contents coverage within your policy. This coverage is designed to help you protect yourself from excessive cost burdens following losses to your essential possessions. Under your household’s contents coverage, you will have this help available. However, contents coverage alone is not necessarily the coverage that is perfected for you. Sometimes, it will not provide you with a full settlement for all the belongings in your care.

As a result, it is often necessary to see if your contents insurance offers replacement cost coverage. Though not automatically included in many policies, you can often add it to your benefits as an endorsement. By doing so, you will often find that you have much better coverage for important items.

Understanding Contents Insurance

Homeowners insurance plans offer coverage for both the dwelling itself and for the contents inside in case of unexpected or unavoidable accidents on your property. Therefore, you have protection for your belongings in case of hazards like:

  • Fires
  • Theft
  • Vandalism
  • Weather Damage

Protection against other, more specific losses, can also be added to your policy in many cases.

Often, your contents policy will insure most items in the home, from furniture to clothing, electronics and other essentials. One notable exception is business materials housed in the home.

However, where these policies will limit coverage is in how much they will pay for certain items. One of the ways they might do so is by placing actual cash value limits on claims. By paying for losses based on items’ actual cash values, the policy only agrees to send you money for the used value of that item, which is not necessarily the value of a brand-new item.

To get contents coverage that reflects an item’s like-new value, you will need to see if you can add replacement cost coverage to your possessions insurance.

Replacement Cost Contents Insurance

You can often achieve replacement cost contents insurance by adding it to your home insurance as a policy endorsement. Once you have this coverage, your insurer will calculate your settlement based on the like-new value of qualifying items. Therefore, you are more likely to receive a higher settlement, which can often help you better recoup your property losses.

However, just because you have replacement cost coverage on your policy, you are not guaranteed to receive 100% reimbursement for all your claims. Deductibles will apply to most claims, and policies might also place a maximum limit on what it will pay for certain items, such as jewelry or electronics. Still, you might also be able to specifically insure items such as jewelry, using a scheduled items rider. This will supply much more extensive coverage on those items of value.

Get A Quote

Posted 2:05 PM

Tags: home insurance, homeowners insurance
Share |


No Comments


Post a Comment
Required
Required (Not Displayed)
Required


All comments are moderated and stripped of HTML.

NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive
  • 2021
  • 2020

  • business insurance(3)
  • home insurance(2)
  • commercial auto insurance(2)
  • commercial insurance(2)
  • general liability insurance(2)
  • no-fault state(1)
  • homeowners insurance(1)
  • workers compensation(1)
  • car insurance(1)
  • fault state(1)
  • boat insurance(1)
  • commercial general liability insurance(1)
  • bop(1)
  • auto insurance(1)
  • general liability(1)
  • business owners policy(1)

View Mobile Version

Get In Touch!
904-551-0627

Contact Us
Facebook Twitter LinkedIn LinkedIn

Resources

  • Get A Quote
  • Payment/Claims
  • About Us
  • Refer A Friend
  • Blog
  • Contact Us

Contact Us

3 Locations To Serve You
North FLA Agency Phone: (904) 551-0627 | Bacon Insurance Phone: (904) 744-5144 | Fax: (904) 744-7888
© Copyright 2021. All rights reserved. | Powered by Insurance Website Builder