If a fire, storm, or burglary damages your belongings, would your insurance cover the full cost to replace them? Many policyholders are surprised to learn that without Personal Property Replacement Cost Coverage, their payout is based on depreciated value—meaning they could receive far less than what it takes to replace their items.

How Replacement Cost Coverage Works

Standard homeowners, renters, and condo policies typically offer Actual Cash Value (ACV) for personal property losses. This means your insurer will pay you what your belongings are worth today, factoring in depreciation. The problem? A five-year-old couch isn’t worth what it costs to buy a new one.

That’s where Replacement Cost Coverage comes in. With this coverage:

1️⃣ You first receive an ACV payout. This reflects the depreciated value of your damaged or stolen items.
2️⃣ Once you replace the items and submit proof of purchase, your insurer reimburses you for the remaining amount—covering the full cost to replace them with new, comparable items.

Without this coverage, you'd be stuck covering the difference out of pocket.

Why You Should Add Replacement Cost Coverage

✅ You Get Full Value for Your Belongings – A 5-year-old TV that originally cost $800 may have a depreciated value of $200. Without replacement cost coverage, you’d only get $200—not nearly enough to buy a new one. With replacement cost coverage, you get the full $800 after replacing it.

✅ Replacing Everything Adds Up – Imagine replacing all your furniture, electronics, clothing, and kitchenware after a fire or break-in. The costs quickly become overwhelming.

✅ Keeps Up with Inflation – The price of household goods continues to rise. If your insurance only pays for depreciated value, you may not be able to afford new replacements.

✅ Affordable Protection That Pays Off – Adding replacement cost coverage to your policy is an inexpensive way to ensure you won’t pay thousands out of pocket after a covered loss.

✅ Essential for Homeowners, Renters, and Condo Owners – Your landlord’s or condo association’s insurance won’t cover your personal belongings. Make sure you’re protected.

Don’t Wait Until It’s Too Late

The time to review your policy is before disaster strikes. If you’re unsure whether you have Personal Property Replacement Cost Coverage, we can help.

📞 Call Rathbun Insurance today to make sure you’re getting the full protection you deserve!