Category Archives: FAQ

What happens if I don’t “schedule” my more expensive belongings?

If you don’t “schedule personal property,” there may be limits on how much coverage you get for “special classifications” of items such as jewelry, watches, silverware, furs, firearms, computers, art and other items or classes. Without Scheduled Personal Property, there are general limits of $1,000 or $2,000. The exact limits of coverage will be shown in Section I of your policy. With a Scheduled Personal Property endorsement, you will typically need to provide both a limit per class desired (blanket), as well as a schedule of individual items with a replacement cost above a certain threshold (scheduled). A scheduled personal property floater usually provides coverage for loss of any type, including accidental loss or “mysterious disappearance.”

What is the difference between Replacement Cost and Actual Cash Value (ACV)?

Actual cash value only pays to replace your home or property after subtracting a deduction for depreciation. For a higher premium, you can purchase replacement cost coverage, which pays the actual cost of replacing your home or property at the price of what it would cost to purchase that item new, today. Replacement cost coverage premiums are about 10 percent more than ACV. Replacement cost contents is an “endorsement” you should definitely consider. (Endorsements are “forms” or changes/additions of special coverage to your policy)