Make Smarter Decisions For Your Property

Property insurance covers the owner or renter of a building and its contents in the event of damage or theft and a third person if they are harmed while on the premises. Homeowners, renters, and flood insurance can all fit under property insurance.

There are three types of property insurance that you should learn about before you dive in.

Replacement Cost

This covers the cost of repairing or replacing any lost or damaged property for the same value. The prices are dependent on the replacement value rather than the cash value.

Example:

Cash Value

This coverage pays the owner or renter the replacement cost minus the depreciation.

Example: A 10-year-old item gets destroyed; you would get the value of the 10-year-old item.

Extended Replacement Costs

This type will pay more than the construction limit if the costs for construction have gone up, but this has limitations. Most of the time, this coverage will not exceed anything over 25% of the limit.