What You Must Know About Your Property Insurance Policy

have acquired new, valuable items it may be necessary to increase your coverage.  For instance televisions, cameras, computers, musical instruments and the like may require increased coverage.  

When deciding on a dollar amount for property insurance, you should think in terms of replacement value for the contents of your home.  The current value of an item may not be even close to the replacement cost.  For instance, say you own a 5 year-old washing machine.  The cash value of that appliance will have depreciated from its original cost.  The real dollar figure needed for insurance purposes is the replacement value.  In other words, what would it cost to replace this item in case of damage or loss?  So, be sure to insure for replacement cost of your personal property, not the cash value of these items.  

An important characteristic of homeowner’s insurance of which one should be aware, has to do with the exclusion of insurance for certain kinds of damage.  Specifically this pertains to flood and earthquake damage.  This certainly applies to the insurance coverage on the structure, but also to your personal property.  Special or even separate insurance coverage may be necessary.  Pay particular attention if there is a specific danger of these events where you live.