It is important to understand the two ways your belongings may be replaced in the event of a covered loss. These two ways are Actual Cash Value and Replacement Cost.

Actual Cash Value (ACV) coverage will pay only for what your property was worth at the time it was damaged or stolen. So, if you bought a couch five years ago for $1,500, it would be worth significantly less today. While you’d still need to spend about $1,500 to buy a new one, your insurance company will pay only for what the old couch is worth, minus your deductible.

Replacement cost coverage, on the other hand, will pay what it actually costs to replace the items you lost (minus the deductible). Replacement cost coverage will cost you more in premiums, but it will also pay out more if you ever need to file a claim. Let your agent know about any particularly valuable items you have.

If you rent out property/properties that you own, Landlord’s insurance protects you against damage or loss to your property. Residential Landlords insurance covers many of the same dangers that ordinary home insurance does, like fire, theft and floods for any single property and more.  Rent protection can be added to you policy if desired and once added the policy will pay you for lost rent due to a covered peril. Liability insurance is another coverage you could add to your policy to give that extra peace of mind.

If you rent out commercial property (or a mixture of commercial/Residential) you’ll need commercial Landlords insurance, Landlord insurance also protects you against damage or problems your rental property may sustain, such as:

1. Damages to your property caused by a tenant.
2. Liability in case a tenant or visitor is injured while on your property.
3. Temporary re-housing costs (residential properties only) following an insured event that forces your tenant(s) to vacate the property.
4. Your rental income following an insured event at the premises such as a fire, flood, vandalism.