My home is valued at $120,000, and I have an average amount of possessions. Just write me a policy that will take care of the structure and what’s in there.
It’s not quite that simple, as any insurance professional readily will tell you. Assuming you’re talking about your principal residence, there are some decisions you have to make.
Two of the most important decisions are: Do you want total replacement cost on your home? Do you want replacement cost on contents?
At Nationwide, we label total replacement cost on your home as replacement cost guarantee dwelling.
It is the lesser of:
* Full replacement cost of an insured residence for equivalent construction and used on the same premises or
* The amount necessary to repair or replace the dwelling.
To qualify for the replacement cost guarantee, you must insure your home to 100% of replacement cost and inform the company within 90 days of home improvements that increase dwelling value by $5,000.
The annual inflation adjustment for your dwelling cost limit will apply automatically.
Replacement cost on contents consists of the cost, computed at the time of loss, to replace lost, stolen or damaged property.
If an identical article is not available, the cost used will be that of a new article similar to the one damaged.
Payment will be based on the smallest of the following:
– Replacement cost at the time of loss
– Full cost to repair
– Special limits of liability detailed in the policy or attached endorsement
– Cost to repair or replace any part of damaged, stolen or lost property with equivalent property.
As an insured, you have the option not to replace the damaged, stolen or lost property. In such a case, settlement would be limited to actual cash value.
If you would decide later to replace the property involved, a claim for the difference between actual cash value and replacement cost may be made within 180 days after the loss.
Finally, items not covered (excluded) under replacement cost contents include: Manuscripts, antiques and fine arts, property that is obsolete or useless at the time of loss, memorabilia, souvenirs, collectors’ items and other property for which age and history contribute substantially to value, and property not maintained or in working order.
This article is provided as a courtesy of Nationwide Insurance Agent Bob Muffler, (Tops Plaza) 5833 S Transit Rd, Lockport, NY 14094. If you have any questions please don’t hesitate to contact us at (716) 433-0097 or www.bobmuffler.com. This article is for informational purposes only. For information on your specific insurance needs or situations, please contact your insurance agent.
Filed under: Home Insurance, Insurance, Lockport Insurance Tagged: | Bob Muffler, Homeowners, Nationwide Insurance, Niagara County, Robert Muffler
