Penny wise and pound foolish… People do the strangest things in order to save a buck on renters insurance. Once in awhile, someone will quote their renters insurance online and they’ll try to save money in the wrong way. The folks at Effective Coverage have seen it all. One of the common mistakes people make is to remove the endorsement for “Replacement Cost Contents.” The assumption that an endorsement is extra and therefore not needed is not a good one to make.
Endorsements, in general, tend to strike a specified portion of the original policy document and replace it with new text. This new text then becomes a part of the policy document itself. In this case, the vast majority of homeowners and renters insurance policy forms, by default, will provide claim settlement only at the actual cash value of the personal property.
For those of us who have ever tried to sell something at a pawn shop, it’s easy to understand what the actual cash value of personal property is. Darn little. Think about what your clothes might be worth at a yard sale. Think about what your computer might be worth on Craigslist. That’s the actual cash value. The Effective Coverage experts know better.
Replacement cost is an inexpensive endorsement, generally, and it should be on every policy. There are very few reasons to not have it.
No, “I’m young and don’t have much stuff” isn’t one of them.
If you’re young, and have a used couch, what do you think the actual cash value of it is? Would it buy you another couch, even a used one? Um, no. More than likely, the actual cash value of your couch wouldn’t even buy you a futon. Take the replacement cost endorsement. It’s worth the couple of bucks a year to make sure that you can replace your stuff in the event the unthinkable happens. Even if it costs you a few bucks, it’s well worth it and the insurance experts at Effective Coverage can help you ensure that you’re getting the best deal possible!
At this point, I’d be remiss to not point out the value of an independent agent who can help you understand the coverage and endorsements you need, and the ones you don’t need, and guide you through the insurance process. Not to mention, independent agents can shop your policy around to different carriers and get you the best price and program for your needs.
Call The Effective Coverage Team at (800)892-4308 to find out the best way to save on your insurance