By Edward L. Blais, JD, CIC
President, Blais Insurance
President, Blais Insurance
From electronics such as iPads
to sentimental jewelry, the Federal Bureau of Investigation estimates that thieves
steal roughly $2,300 of valuable goods per home break-in. While it may seem
like homeowners do not have any control in protecting themselves, we at Blais
Insurance suggests adding replacement cost coverage to help mitigate losses and
secure peace of mind.
To understand the value of
replacement cost coverage, families would benefit from understanding exactly
what homeowners insurance covers following a break-in. After a police report is
filed, insurers will assess the extent of losses in a claim.
Once all of the necessary
steps are completed, insurance companies send a check by mail to the
policyholder. The amount of the check will vary depending on individual policy
terms and the amount of recorded losses. It is here where disagreements can sometimes
ensue.
Homeowners insurance can help
cover some of the losses from theft through dwelling and personal property
coverage. Dwelling coverage helps replace the parts of your home that were
damaged from the break-in such as covering the cost of a broken window. On the
other hand, personal property coverage helps cover the cost of stolen
belongings minus depreciation. Insurance companies refer to this ‘qualifier’ in
personal property coverage as Actual Cash Value (ACV).
To illustrate how Actual Cash
Value works, imagine you own a lightly used MacBook Pro that retailed for
$1,600. If the computer was stolen from your home, an insurance appraiser may
only value your stolen item at half of the purchase price you paid.
Replacing the computer then
becomes a headache, but it does not have to become burdensome for homeowners.
For a few extra dollars a year, homeowners can remove the ‘qualifier’ and have
replacement cost coverage. Instead of paying the difference to buy back your
device, replacement cost coverage would pay out the total cost to replace your
stolen product with the newest model available.
No one expects to be the
victim of a burglary, until it happens. Before a loss can occur, Blais Insurance
encourages homeowners to strengthen their current insurance policy by adding
replacement cost coverage. For more information or to learn how to protect your
family from other losses, speak with a Blais Insurance agent at 401-725-0070.
