All homeowner policies in California automatically cover household contents. However, the way these contents are covered can vary greatly depending on the type of policy. Purchasing a cash-value homeowners policy means when you file a claim, your lost, stolen or damaged items will be paid out at a depreciated value.
On the other hand, a replacement-cost policy would pay for the cost of a brand new TV similar to the one that was stolen or damaged. You would get the full $1,000 back in the event of a loss but at a cost of higher monthly premiums. Depending on your situation, replacement-cost coverage can be affordable. However, cash-value may be a better option for homeowners on a budget. In fact, experts estimate that opting for replacement-cost coverage over a cash-value policy could cost you up to 15 percent more each month in premiums.
Evaluate Your Options
While a cash-value homeowners policy can be a great option for some, it is not right for everyone. To discover what type of homeowners policy you need, take the time to analyze your home and possessions by making a list of your home’s contents. Waiting until after a catastrophic loss or devastating natural disaster is not a good time to realize that you failed to adequately assess your insurance needs.
Take the following steps to carefully analyze your insurance needs and decide if cash-value coverage is right for you:
A cash-value policy still gives you peace of mind by adequately insuring your home and its contents in case of a loss, but it also offers the benefit of lower monthly premiums. For many families, cash-value coverage is an affordable solution. If budget is your number one concern, contact Homeowners Insurance California about purchasing cash-value homeowners insurance. Learn how to protect your home and your budget with cash-value homeowners insurance. CONTACT US TODAY at (844) 234-5600.