Maximum Contents Coverage
$120000
$200000
$280000
$360000
$400000
$520000
$600000
This assumes your contents defaults to 40% of your insured value and you have replacement value, rather than ACV.
Depreciated Contents Coverage
$60000
$100000
$140000
$180000
$200000
$260000
$300000
This assumes you have ACV and your contents are about five years old and thus have depreciated by 50%.
Amount at risk
$60000
$100000
$140000
$180000
$200000
$260000
$300000
This is what you will pay out of pocket* to replace your contents if they are destroyed and you have ACV coverage.
Price of replacement value
$39
$50
$82
$96
$108
$126
$136
This is the extra premium to reduce your amount at risk to $0.
As you can see, replacement cost coverage is very affordable (about 4-5% of premium) and significantly reduces your risk.
If you are looking to lower your insurance premium, it is likely a better option to raise your deductible rather than gamble on ACV coverage.
* You also need to pay your deductible for the covered loss.
At Informed, we provide tools to help you make smarter decisions about your home insurance.
If you have Actual Cash Value (ACV) coverage for your home’s contents you may be significantly underinsured. You can learn more about the perils of ACV here.
We’ve made it easy to see how much risk you are taking when you have ACV coverage.
To begin, select the amount of insurance that is closest to your home’s insured value:
Insured Value
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