While the type of coverage will depend on the policy you end up going with, you will always be given similar options concerning the amount of coverage you get. When you make a claim, your insurance agent will present three options to you on how to move forward. The option you go with will depend on what your deductible is and the details of the claim.
There is Cash Value Coverage, also known as Market Value Coverage, which helps cover the cost of repairing or replacing your personal properties up to the policy’s limit. This type of coverage is not as expensive as the other ones. However, the chances of you being paid in full for damaged or lost items is unlikely.
There is Replacement Cost Coverage, which will completely cover the cost of replacing or repairing damaged or lost personal property. This type of coverage usually comes along with the H0-5 homeowner’s insurance policy. It is more expensive, but provides more coverage in the event of a natural disaster or theft.
The third type of coverage is called Guaranteed or Extended Replacement Cost Coverage. This policy gives you the most coverage in the event of a disaster. If your home is swept away by a tornado, you will be reimbursed for the exact amount that your house was worth when you bought it.
At Insurance Navy in Palos Hills, we provide low-cost homeowner’s insurance with high-quality coverage. If you recently bought a home in or around the city of Chicago, the Insurance Navy agents will help you find an affordable homeowner’s insurance policy that fits your needs. To learn more about our cheap homeowner’s insurance policies, please visit our website at www.insurancenavy.com