3 Figures Important to Your Homeowners Insurance

Figures Important to Your Homeowners Insurance

Figures Important to Your Homeowners InsuranceUnderstanding the numbers in your home insurance policy.

Your home is likely your most valuable asset, and a homeowners policy is an important part of protecting your home and belongings. If you have a mortgage on your home, your lender probably required you to get a homeowners policy. But even without a mortgage, it’s still your best bet to protect your investment. So that you fully understand the numbers in your home insurance policy, read on.

Replacement Cost

Not understanding this term can be an expensive oversight. This number means that your policy pays the full amount to replace your dwelling and property, up to a maximum dollar limit. For example, it doesn’t matter if your computer is 10 years old, you are getting reimbursed for the cost of a brand new one if it is damaged in a covered peril or stolen.

Actual Cash Value

This is the flipside of replacement cost. This type of coverage takes depreciation into account when calculating your payout. This means you are getting a much smaller check for that 10-year-old computer. Actual cash value often means lower premiums but it could end up leaving you with a large gap between the amount of the check you receive and how much it costs to refurnish your home.


Your insurance deductible represents the amount of money you will have to pay out of pocket before your insurance kicks in. Having a higher deductible often results in lower premiums because you take on more responsibility for the cost of repairs.

Make sure you have the right homeowners insurance in place. To find the right coverage to address your needs, contact Kurt Rolf Insurance Agency.  Serving Minnesota, Wisconsin, Florida, South Dakota, and Arizona; our dedicated team is ready to assist you with all your coverage needs.