When searching for home insurance on the Treasure Coast, people typically focus on what happens to the home itself in the event of a claim. While it is incredibly important to understand dwelling coverage, replacing your stuff quickly becomes important in the event of a major claim!
What personal property is on your policy and how it works!
What happens when you have a major claim on your Florida Home Insurance that is a result of a total loss? The major home insurance companies will generally cut you an immediate check to cover immediate needs like a hotel stay, toothpaste, and clothes if needed. It sounds somewhat crazy, but in the immediacy of a disaster, just having the right kind of toothpaste can bring a sense of comfort. Then the long process of reassembly begins.
While rebuilding a house is a long process that involves many choices, buying enough clothes to survive many days without doing laundry is important in the near term. It's also important to begin arming the kitchen with things like ketchup and bacon. This is where Personal Property coverage comes into play. The easiest way to think of what all is included in Personal Property on a homeowners’ insurance policy is to cut the roof off a home and turn it upside down. Anything that would fall out as you shake the house is going to fall under that coverage. Kitchen appliances that are not secured to a wall or cabinet, furniture, clothes, electronics, and pantry items all fall into this designation.
So now that we've determined what is covered by personal property on a home insurance policy, what happens to it in a claim? There are two ways to settle personal property on a claim.
They are actual cash value or replacement cost.
Let's, take a look, how each works for you.
Actual Cash Value
Replacement Cost Value
So, which one do I need on my policy?
That's a great question. The reality is that we ALWAYS recommend that you carry replacement cost coverage on your policy. We do so because it enables you to reassemble your life in the best way possible if the proverbial stuff hits the fan at some point. In helping real people with real claims, we found that getting a check for a third or half of the cost of refurnishing your home just isn't cool. And for that reason, it really is a simple equation for us to solve. If you aren't sure what you have today, feel free to give us call for a policy review. We will make sure you understand what you do and don't have with a policy.