Do You Need Full Replacement Cost Coverage for Your Home?

When you purchased your home, you bought insurance to protect it.  Your Homeowners insurance is there to rebuild your property if you were to suffer a fire, severe weather, or many other losses.

However some people make the mistake of buying the cheapest insurance, thinking that it’s just like every other Homeowners policy.  That’s not true! 

When you look at the details of your home policy, you’ll see that you are either covered for “full replacement cost” or for “actual cash value.”  These are important differences. 

Big difference between 'Full Replacement' and 'Actual Cash Value'

Full replacement cost means that the insurance company will pay whatever the cost is to get your home back to the state it was in before the claim.  It’s why your home is usually insured for a lot more than you actually paid for it.  Building costs and materials are always increasing, and it may cost much more to rebuild your home then it originally did.

Actual cash value on the other hand, only pays what your home was worth at the time of the loss, minus any depreciation.

Here’s an example:  Let’s say that your couch was burned in a covered fire claim.  Full replacement insurance would buy you a new couch in the same style and value as the original was when you bought it.  You get a brand new identical couch.

Actual cash value would only pay what your couch was worth at the time of the fire.  The “market value” of your couch is more likely what you could have sold it for on Craigslist. You’re not going to get a new couch from the claim, but you could go buy a used one similar to the condition of yours right now.

Now imagine what a difference that makes if you were to suffer a major loss on your home! 

We believe that full replacement cost is what everyone needs!  So if you’re shopping for home insurance and notice that one price is substantially less than the others this could be why.  Always check to see what kind of coverage you’re purchasing. 

And give SAV-ON a call at 888-867-2866 to learn more and get a quote for your home. 

Spring Home Maintenance Checklist

Spring is in full swing!  And that means it’s time for warm weather, spring flowers, outdoor activities, and storms. 

Now that the temperatures are warmer, the days stay light longer, and the rain has mostly gone away, there are a few things you can do to make sure that your home stays in great shape! 

Your spring home maintenance checklist:

• Test smoke & carbon monoxide detectors and change their batteries.

• Check garage door, replace batteries in your remote.

• Check outside of house for tree limbs touching roof. Trim them back so a falling limb won't damage your roof in a windstorm.

• Clean siding and check for peeling paint. Now's a great time for a new coat of paint!

• Weed your garden and plant some fresh flowers.

• Inspect roof and chimney for cracks and damage.

• Wash all windows - inside & out.

• Service your lawn mower.

• Dust blinds and vacuum curtains.

• Insure your boat before summer!  (Call us today for a quote.)

• Install screens on windows and doors to keep bugs out and let fresh air in.

• Clean outdoor furniture.

• Clean kitchen and bathroom cabinets and throw away outdated food, medicine, and cosmetics.

And if we don’t currently insure your home and autos, give SAV-ON Insurance a call at 888-867-2866 today for a free quote and review!  We’ll make sure that your family is protected all year long, and save you money in the process, too!