Get A FREE INSURANCE QUOTE +281-852-3333

Do you have the right property coverage?

HomeInsurance CoverageDo you have the right property coverage?

Do you have the right property coverage?

When it comes to insuring your most valuable possessions, you have important choices to make. In the event of loss or damage to your home or car, do you know how you’d like to be reimbursed? Does your current policy give you enough peace of mind?  Let’s take a look at two different types of coverage to ensure you have the policy that’s right for you today:

Actual Cash Value

If you choose an actual cash value insurance policy, you’ll be compensated for the fair market value of the item at the time it was lost or damaged.

Pro: These policies often have less expensive monthly premiums, so you could insure valuable items for less.

Con: The payout is not based on what you paid for the item. This means you could be out the difference if something has depreciated since you bought it.

For example, if you had a wreck and wanted to replace the car you bought five years ago, you’ll be accepting payment for what a vehicle of that make and model would fetch now, minus your deductible and wear-and-tear.

Replacement Cost Coverage

Many people prefer replacement cost insurance, especially homeowners. This sets you up to be reimbursed for the full amount it would take to rebuild your home and replace everything in it.

Pro: You can replace older items for what they would cost to purchase new.

Con: This option tends to be more expensive.

Keep in mind that multiple factors come into play when determining how an insurance claim will be paid out, but by learning about your options and checking in annually (at least), you can set yourself up for success.

Have questions about your coverage? Reach out anytime.