Replacement cost coverage generally will provide you with a claim settlement that allows you to purchase another item of like kind and quality. Actual cash value coverage will pay you based on the depreciated amount of the item at the time of loss, which may not be enough for you to actually replace the item. Talk to your Western Customer Service representative about which coverage type best fits your needs and situation.
Based on the information that you provide to Western’s Customer Service Representative, the quoted coverage and premiums should meet or exceed your Lender requirements. We pride ourselves on our ability to work closely with the homeowners and their lenders to meet your lender expectations.
If you purchase a homeowner policy, the majority of policies from most insurance carriers will cover your appliances and HVAC, up to the limit of coverage you purchase if they are damaged by a covered peril. Some, but not all, policies also offer mechanical breakdown protection which covers these same items if they simply stop working. That can save you a lot of money for an unexpected repair or replacement. You pay just the deductible. Ask our Customer Service Representative for a more detailed explanation…
The simple answer is – Yes. The policy your landlord buys to protect the structure does not cover your belongings. We offer more than one option for renters insurance to cover your personal belongings and can also provide personal liability coverage.
You are probably aware that many items depreciate in value over time. When an insurance policy provides replacement cost coverage, claim settlements for a covered loss do not subtract any amount for depreciation. If a policy provides actual cash value coverage, claim settlements will take depreciation into account.
You definitely should discuss this with your agent. Home values can vary by Structural design, Age and even the square footage in the overall building. Most insurers require that your home be insured for a minimum of 80 % to 100% of the cost to replace it with a new home of equal quality. Some Dwelling Coverages rate the home value based on an Actual Cash Value basis, so you really need to ask about this.
In general, if you purchased limits of coverage on your standard homeowner or dwelling policy for your personal possessions they will be covered the same as your home itself. You can also schedule selected higher priced items for increased coverage. Don’t forget to ask about this as well.
When scheduling personal property (personal belongings) on your homeowners insurance, you should plan on scheduling any higher priced items that would go beyond the standard limits described in your policy. These could include furs, coins and other valuable collections, cameras, firearms, jewelry, art, computers, silverware, etc. (of course excluding those specialty belongings used professionally).