Home insurance is something most homeowners have either as a requirement from their lender or by choice. Unfortunately, many homeowners are underinsured. It is estimated two out of three homes are not adequately covered. Most are more than 20% short of what they should have. That is pretty worrisome if you ever have to file a claim. At Harrison Insurance and Financials LTD in Hailey, ID, we have been providing coverage in Hailey, Sun Valley, and Bellevue for 31 years. We are locally owned and operated, which allows us to get to know our clients and their needs.
Home insurance offers many different types of coverage. It protects your assets with liability insurance, it protects your physical structure with property insurance, and it covers your personal possession with content coverage. Content coverage is usually between 50-70% of your home replacement cost. If your home has an insurance replacement value of $100,000, your contents would be $50,000-$70,000 maximum. If you have expensive items, they should be added separately with a rider.
Contents coverage comes in two options, actual cash value and replacement cost. The type you choose makes a big difference if you ever have to use it. With actual cash value, you will get the depreciated value of the items being replaced. An example is you have a five-year-old TV you paid $500 for. Today it is worth $200, and you will collect the lower amount. A new TV of a similar type now costs $550, and you will be $350 short of the amount you need to replace it. With replacement cost, the insurance company will give you the $550 you need to replace your TV when you actually replace it.
Contact Harrison Insurance and Financials LTD in Hailey, ID with any questions you may have about home insurance and your content coverage.