Let's face it. Not all insurance is created equally. There is good insurance and there is bad insurance. Some times you don't find out the difference until it comes time to collect.
Heed my warning: You Must Make Sure You Have Replacement Cost On Your Homeowners Insurance For Your Personal Property.
Look, insurance for property can be summed in one of two statements.
ACV: Actual cash value - This insurance is bad insurance. It would pay you the diminished value of your stuff if something happens to it. As an example: your 32 inch television you bought 4 years ago for $500.00 is now worth about $100.00 This insurance would pay you only $100.00.
Replacement cost - This is good insurance. When you buy a 32 inch television you want to be able to replace it with a 32 inch television. This insurance will pay the replacement cost so you can buy a similar television to the one that you lost.
Always buy replacement cost on your contents.
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