home insurance in Lewistown PA

Could you replace all of your belongings without home insurance?

Most homeowners could not replace their belongings and repair their home without the aid of home insurance in Lewistown, PA. Should your home face a peril like damage from a thunderstorm, fire, hail, or natural disaster, you would have to figure out how to foot the bill to get your house back to your home sweet home status. This is a worst nightmare situation for most homeowners!

Fortunately, if your home and belongings are lost in such an event, home insurance steps in to cover costs of replacement and repair! Within a homeowners insurance policy, homeowners can opt for Actual Cash Value or Replacement Cost. But when it comes down to it, what is the difference?

Payment based on the replacement cost of damaged or stolen property is usually the most favorable figure from a homeowner’s point of view. This is because it will compensate you for the actual cost of replacing property. For example, should your camera be stolen, a replacement cost policy will reimburse you the full cost of replacing it with a new camera of the like kind. The insurer will not take into consideration the fact that you ran three rolls of film through the camera every day for the last two years, causing a considerable amount of wear and tear!

Contrastingly, actual cash value (ACV), otherwise termed as market value, is equal to the replacement cost minus depreciation. In short, it represents the dollar amount you could expect to receive for the item if you sold it in the marketplace today. In the case of the stolen camera above, the insurance company would deduct depreciation and return you the difference.

Now that you know the difference between the two, be sure to ensure that your home insurance  covers your home and belongings in the best method to suit you. For a quality policy to match your needs and budget, contact Sausman Insurance Agency, serving Mifflintown, Millersburg, Lewistown, and neighboring cities in Pennsylvania today!