Quick Homeowners Insurance Policy Facts

shingles. If this happened because your shingles were already 15 years old and obviously in need of being replaced, you’re not likely to have coverage for that.

A good idea to keep in mind is to always be sure you have adequate homeowners insurance coverage. Don’t let yourself get caught without the coverage you need. So, if you live in an area prone to flooding, be sure you have flood insurance. Your insurance agent can easily arrange you to have coverage for this. The same applies if you live in an area that has frequent earthquakes, be sure to purchase a policy that will cover earthquake damage.

A homeowners insurance policy will also provide funds for any loss of use due to an insured disaster. This will help if you and your family need to move into another home or apartment temporarily. It can also provide for clothing and food.

What Does ACV And Replacement Cost Mean?

When you hear the term ACV, or actual cash value, it means the cost of replacing that item, minus depreciation. So, the older your furniture, clothes, appliances, etc., are, the less you will get in the event of a claim. If your TV is 10 years old and is damaged in a claim, you may get 25% of the cost of a new one. This is just an example for you to understand.

Replacement cost on the other hand means just that. It is the actual cost of replacing a covered item. There is no depreciation figured into the claim. I strongly advise everyone to be sure there homeowners