The good news… your insurance carrier has confirmed your damaged or stolen Contents (clothing, furniture, appliances, electronics and more) are “covered”. But how does that translate into a claim check?

First, expect to pay a deductible. This is the amount you agreed to pay before the insurance coverage takes over the process.

Second, expect some limitations and exclusions for Special Contents such as jewelry, business-related items, guns, collectibles and some other high-value or unusual items. This is a reminder to talk to us about those valuables.  You may be pleasantly surprised by affordable special coverage.

That said, how will the check be calculated? If you have Actual Cash Value Contents coverage, the carrier starts with “cost new” – today’s prices.  But they apply a depreciation factor recognizing age, wear, tear, and/or obsolescence.

If you have a Replacement Cost Claim Settlement policy, you will be paid the amount to buy a similar replacement item at today’s prices. Typically, you must actually replace the item to be offered the full Replacement Cost settlement.  The carrier may initially settle a claim on an Actual Cash Value basis, paying the difference after you actually replace the covered item.

If you have questions, visit our website’s Consumer Info section (, or contact us.

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