Replacement cost vs. Actual Cash Value in Colorado

Insurance is a necessity whether you live in Centennial, Colorado or any other state. Making sure you understand all of the insurance terms is also important. Whether you are protecting your vehicle, your home, or your life, make sure you have adequate coverage in the event of a disaster.

Replacement cost coverage is one type of insurance available in Colorado. Basically, this type of protecting will help you replace your items if they are destroyed in a fire, flood, or other hazard. For example, if you have a fire and your new 55 inch flat screen television is destroyed, actual cash value coverage will give you the money to go out and replace the same size television. This is important if you have had the item for several years or if you bought it on sale and got a great deal. You do not want to settle with downsized items because you don’t have enough insurance for replacement.

Actual cash value insurance will give you the value of the item at the time it is lost. For example, if your laptop computer is stolen from your home, the insurance company will take into account the value of the item at the present time, not how much you paid for the laptop or how much it will cost for you to replace it. You may wonder why anyone would choose actual cash value coverage and the answer is price. This type of protection is less expensive than replacement cost insurance.

Finding a great deal on insurance in Colorado is important. When you work with us as your local independent agent, we will help you find a policy you can afford with all of the protection you need. Don’t sell yourself short. Get the best insurance you can and make sure all of your items are protected.

One thought on “Replacement cost vs. Actual Cash Value in Colorado

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