Homeowner\u2019s Insurance policies and Renter\u2019s Insurance policies include the option of purchasing \u201creplacement cost\u201d coverage.\u00a0 This costs more than lesser coverage\u2019s but it is definitely worth spending some extra money to guarantee that you can afford to replace your goods if they are damaged or stolen.<\/p>\n
If you don\u2019t purchase \u201creplacement cost\u201d coverage, you will only receive an \u201cactual cash value\u201d settlement if your goods are stolen or damaged.\u00a0 This means that, the insurance company will only have to pay you what the goods were worth at the time, not what it cost you to purchase them new or what it would cost to replace them.\u00a0 Think about those brand new running shoes that you spent $150 on six months ago.\u00a0 It would cost at least that much to replace them now, but their \u201cactual cash value\u201d (i.e. garage sale value) might be less than half what it would cost to replace them!<\/p>\n
There are limits to this type of insurance coverage, of course.\u00a0 You will only receive replacement cost reimbursement if you actually replace the items with \u201clike kind and quality goods.\u201d\u00a0 In other words, you can\u2019t go out and buy gold plated tennis shoes to replace your stolen Nikes.\u00a0 \u00a0This Coverage is a sound investment!<\/p>\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":4,"featured_media":937,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[109],"tags":[26,38,108,75],"class_list":["post-923","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-legal-tips","tag-insurance","tag-nelson-boyd","tag-replacement-cost-insurance","tag-seattle-attorneys"],"acf":[],"yoast_head":"\n