After working hard your whole life to be able to afford expensive things, you naturally want to protect your valuables from being stolen. Homeowners insurance covers theft and damages to an individual property, including valuable possessions in your home.
If you’re wondering how buying home insurance is a good step toward security, here are some basics to help you out:
Difference Between ACV and RCV Coverage
Homeowners insurance will cover the theft of all of your items irrespective of the place. You have two coverage options to choose from – ACV (Actual Cash Value) and RCV (Replacement Cost Value).
ACV offers the amount your belongings are worth after depreciation, while RCV gets you full compensation for the item in today’s economic market.
Both ACV and RCV have their own benefits and disadvantages. You must consult an insurance agent to accurately determine which one is suitable for you.
Stolen Cash and Jewelry Coverage Under Homeowners Insurance
Homeowners insurance covers almost everything that has been stolen except for a few high-value items. These items mainly include musical instruments, jewelry, electronics, and cash. You can apply for reimbursement in case any of these items are stolen, but only up to a limited dollar amount.
Most insurance companies set a limit of $200 on stolen cash. So if you lose $1000 in cash, you would be covered for only $200. Apart from cash, other high-value items include jewelry.
If someone steals your wedding ring worth $10,000, the insurance company will only reimburse up to $2,000. If you want to protect your jewelry, expensive artwork, or antiques, you should consider a ‘personal floater’ policy.
Improve Security to Prevent Theft
You can always improve your home security system to prevent theft of cash or jewelry from your home. You can install better cameras and alarms that will notify you of any unusual activity.
These are some of the key points you need to know about coverage of theft of cash under the homeowners insurance. For assistance with all your coverage needs, contact an insurance professional at Westwood Insurance Agency today.