Homeowners Insurance Secrets That Your Agent Won't Reveal

Secret 1: The Importance of Replacement Cost Coverage

One of the key aspects of homeowners insurance that often goes unnoticed is the difference between actual cash value and replacement cost coverage. Actual cash value policies reimburse you for the depreciated value of your items, while replacement cost coverage allows you to replace lost or damaged items with new ones of similar quality. While replacement cost coverage may have higher premiums, it provides far better protection, ensuring that you can fully recover from a loss without out-of-pocket expenses¹.