Who decides how much my damages are worth?

If you have a homeowners insurance policy with E.S.T.I.R. Inc. in Newark, NJ, you probably know your policy limits.  But you probably don’t know how damages are assessed, and what you will need to have to recover your damages in case of loss. The State of New Jersey Department of Banking & Insurance recommends you understand how insurance works before choosing your limits and comparing policies.

If you do not have enough insurance, you may not be able to cover your losses in case of an event, such as fire or theft. You may assume that your possessions have a certain value, when in fact the value has gone down over time because of depreciation. Depreciation can be caused by wear and tear, or it may happen because something like a television or computer loses value as newer versions replace it.

Replacement Cost vs. Actual Cash Value

You will be able to choose a policy which allows you to replace your valuables, or one which compensates you for their actual cash value. 

The Replacement Cost does not mean the cost for finding the exact same item, but it allows you to replace the loss with something like it and of the same quality, minus the cost of depreciation. If you opt for a policy which gives you Actual Cash Value, you will be able to get the amount needed to repair or replace your property minus depreciation.

Even if you have think you have obtained the right amount of coverage to cover any losses you could incur on your home, it is important to make sure that your policy reflects what you need. Call E.S.T.I.R. Inc. in Newark, NJ to discuss your policy or see if you would like to add more coverage.