Calgary Home Insurance Coverage: Replacement Cost or Actual Cash Value?

In the time since the devastation of the 2013 floods, Calgary citizens have learned a lot more about their home insurance than they ever expected would be necessary. They have, with some reluctance, become new insurance experts, graduates of the school of hard knocks.

Calgary Home Insurance For Your Belongings

When it comes to the items inside your home, you may choose between two types of Calgary home insurance coverage:

1. Replacement Cost: When belongings are stolen or destroyed, with Replacement Cost coverage the insurance company will replace your items without factoring in depreciation.

1. Actual Cash Value (ACV): With ACV coverage, if your belongings are damaged you will receive the amount your belongings were worth in the condition in which they were in. Meaning, depreciation is factored in.
2. Declarations: This is a printed statement that includes the annual premium and coverage details of your policy. The Declarations Statement is not your policy, but it should be attached with it and kept in safekeeping.
3. Rider: Home insurance covers valuables, but not necessarily to the amount they are actually worth. For items of exceptional value, such as artwork, antiques, jeweler, valued collections, and wedding rings, apply for a Rider to be added to your policy to ensure their total worth will be covered. You should itemize everything - perhaps with photographs or video – and keep that list along with your policy.

Make sure you inform your insurance broker of any changes that may add value to your housing situation, for example, the addition of outbuildings, new construction or renovations, and more. The policy needs to be current, and that is the homeowner's responsibility.

Calgary Home Insurance: The Stakes Are High

When it comes to the actual physical building that is your home, Guaranteed replacement cost requires the insurance company to rebuild your home when damage is so severe it doesn’t make economic sense to repair. Your Calgary home insurance broker should be able to provide a home evaluation form that will assist you in figuring out this number.

When choosing a home insurance policy, consider whether you are willing to pay the costs of replacing all the essentials that might fall through the cracks due to depreciation. Without Replacement Cost insurance, you escalate the risk if you:

Calgary Home Insurance: Only As Good as Your Insurance Professional

Ensure to discuss all aspects of your home insurance coverage with your broker or provider. Their experience can help you understand exactly what policies will best represent your family’s needs and provide peace of mind that your valuable and loved ones are protected.

To find the right Calgary home insurance coverage, contact a broker at godfrey-morrow insurance for a quote today.

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