Know the difference between cash value and cost to replace

When buying insurance on your home, it is important to understand the terminology, and what is meant by various coverage. Usually people have the belongings insured as well, which insurance on the contents. Insuring the contents of your home may be part of, or could be separate from, the policy on the home itself. The kind of insurance you choose can affect the price you pay for your policy. Idaho has one of the lowest average prices for homeowners insurance in the nation.

That’s good news for customers in and around Sandypont, ID., and the Insurance Shop USA is here to help make sure you have the best homeowners policy for your situation.

When you get a policy, that includes insurance on your contents, you will have to decide between "cost to replace"  and "actual value" for coverage.  Basically replacement cost is what it would cost today to replace the item that was destroyed or stolen, without regard to its condition. Cash value would be the cost to replace, minus depreciation, which is the decline in value due to age or use.

Often it works like this.  Say you have a sofa damaged by a fire. If you paid $1,000 for the sofa five years ago, and the same sofa costs $1500 today, you would get a check for $1,500 if you had cost to replace coverage.  Some insurance companies pay the actual value at the time, and pay you the difference when you give them the receipt for the purchase.  If you had cash value insurance, and that $1,000 sofa from five years ago is worth $600 now, you would get a check for $600. A cost to replace policy costs more, so that might enter into deciding which one to get.

Come visit us at the Insurance Shop USA, and speak with one of our agents to help you make sure you have the coverage you need for your situation. Come by our offices, or give us a call, to make sure your coverage is up to date, or if you are needing insurance for the first time.


Your Life Has Changed; Has Your Insurance Caught Up?

Life insurance serves the important purpose of covering funeral and other costs associated with the death of a loved one. One smart move is to get life insurance coverage while you are young. However, as your life changes, you may need to update the coverage of your life insurance. You don’t want to saddle family members with unexpected funeral costs that might have otherwise been covered. Consult with an agent at The Insurance Shop USA for a discussion of your life insurance coverage options. Serving the Sandypoint, ID area, we can provide quotes for affordable life insurance coverage that will serve your personal needs as well as those of your family. Funeral costs are high, and other financial obligations that you leave behind for your family to manage might include medical bills or other debt. You don’t want to do that to them. You can make sure your family is well taken care of when you are gone.

Family members depend on each other. If you or a spouse dies, how will this affect the survivors? How will income, debt management, personal care, and the general household be managed? Life insurance gives survivors the opportunity they need to grieve before they have to face such pressing questions. The Insurance Shop USA can help you plan accordingly so that dependents and other family members don’t have to face even bigger challenges than the ones that come naturally with the loss of a loved one.

While it’s important to have life insurance when you are younger, it’s important to review your policies regularly as your live changes. The Insurance Shop USA can discuss the best options available in coverage and rates to serve you and your family.