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EDISON BLOG

Archive: March 2020

How Much Personal Property Coverage Do I Need?

 
Last Updated: March 1, 2020

 

 

Choosing the right personal property insurance coverage can be a challenging task. It’s important to ensure your policy will sufficiently cover the value of your belongings.

 

The Difference Between Actual Cash Value and Replacement Value

Although actual cash value and replacement value both relate to the coverage you receive for damaged personal property, they function in significantly different ways.

 

Replacement Value

Replacement value is the cost of replacing an item with a brand-new item. So, if your TV is stolen, the replacement value would be enough to purchase an equivalent, brand new model at the store.

 

Actual Cash Value

Actual cash value is determined based on the replacement cost minus the depreciation of a damaged or stolen item at the time of the loss.

For example, if a 5-year-old TV is replaced at actual cash value, the payout would be equivalent to the price of another 5-year-old TV rather than the price of a brand new one. This may be significantly less money than would be required to purchase a brand-new TV from the store.

This is because over time the value of nearly everything declines. Your furniture begins to wear after many years of binge-watching and game days, the TV begins to flicker, and your computer doesn’t run as fast as it used to.

 

Which is better?

Neither type of insurance is better than the other. Actual cash value insurance will be the best coverage for some, while not for others.

With replacement cost insurance you’ll receive more payment in case of damage or theft, but the downside is you’ll also be paying more in premiums. With actual cash value insurance, you won’t be paid as much for stolen or damaged items, but you will save money on premiums.

The right type for you depends on the value of your personal property and what you’re willing to pay.

 

Homeowners V. Condo Owners Insurance

Homeowners usually have less control over their personal property coverage. Their coverage typically amounts to half of their policy’s dwelling coverage limit. For example, if your dwelling limit is $300,000, then you will have $150,000 in personal property coverage.

Condo policies usually allow for more control when selecting a personal property limit. The allowed will vary depending on the insurer.

 

Understanding Sub-limits

Understanding your insurer’s sub-limits is key to buying the right coverage. For example, you might have $100,000 in total coverage but only be entitled to a smaller, fixed amount for an individual item.

Common sub-limits on personal property insurance include:

•             Cash and gold: $250

•             Furs and precious stones: $1,000

•             Home-based business property: $2,500

•             Silverware: $2,500

•             Firearms: $2,500

When the value of an item exceeds your insurer’s sub-limit, consider scheduling the item by listing it directly in your policy. Scheduling an item separately with your insurer will mean it’s protected for its entire value. This will slightly raise your premium, and an appraisal or detailed description of your possession may be required.

 

Now with a good grasp on personal property insurance, it may be time to consider purchasing coverage or updating a current policy. Edison Insurance Company can customize your policy to fit your needs. Call us at (866) 568-8922 to get a free quote.

 

How to Spring Clean Fast

Last Updated: March 1, 2020

 

Spring is a season all about change and new beginnings. As such, you should take some time this month to clean your home thoroughly. Maintaining your home prevents damage due to neglect, which isn’t typically covered by a homeowner’s insurance policy. Spring cleaning doesn’t have to take weeks, though. We’ll detail how to spring clean fast with strategies to improve your efficiency.

 

Prepare

If you want to get your spring cleaning done fast, remember the old adage, failing to plan is planning to fail. Make sure you buy and gather all the supplies you’ll need to clean beforehand. Nothing is more time consuming than continuously driving out to buy cleaning supplies you forgot you needed. Also, prepare a schedule complete with all the rooms and areas of your home you plan to clean.

 

De-Clutter

Decluttering your home before you begin cleaning is a great way to save time. You will have more room to clean, and you’ll be able to reach areas previously covered by the clutter. The increased mobility you’ll have throughout the house after decluttering will also let you move and clean faster.

Decluttering is also a good way to childproof your home. If you have small children, now is the time to move toxic medicines and products to an area out of reach. Also, make sure to check for small items on the floor to prevent your child from choking on them.

 

Get the Family Involved

The task of spring cleaning shouldn’t have to all fall on one family member. If you feel you need help, get your family involved. Make it fun by playing music or turning cleaning into a fun game for younger kids.

 

Keep Your Doormats Dirt Free

Giving your doormats a thorough cleaning can keep them absorbing dirt and grime at peak efficiency, keeping your home's floors clean. The less dirt carried into the house, the less time you'll have to spend cleaning your floors.

To really save time, make this a regular part of your cleaning schedule all year round.

 

Clean Room-by-Room

Adopting a room-by-room cleaning strategy is by far the most effective way to deep clean your home. Create room checklists which outline everything needed to clean each room. If your family is helping, give each family member a checklist to complete. And don't forget to create a master room list to keep track of your progress through the house.

Consider conducting a home inspection as you go through the rooms. Check for damage like leaks, cracks, and breaks in the interior and exterior of your home. Keep a record of issues for future insurance claims.

 

Work from Top to Bottom

Before you even touch a mop, think about the best way to approach the room. As a general rule, clean from the top of the room to the bottom. For example, if you sweep before you dust, you'll likely have to come back with the broom for a second sweep once you finish dusting. Cleaning from the top-down helps streamline your efforts and save you time.

 

Form New Cleaning Habits

Take steps now to form new on-going cleaning habits you can do throughout the year to make your annual spring cleaning a little easier. Create simple 15-minute cleaning routines to use regularly. This will keep your home clean and tidy all the way up until your next spring cleaning. 

 

Spring cleaning is an excellent way to prevent the wear and tear insurance may not cover. However, sometimes unexpected damage can occur to your home which may not be avoidable, especially for Florida homeowners.

 

Sufficient insurance coverage to fit the needs of your family is available through Edison Insurance Company. Should you have any questions or concerns about your policy, contact your agent, or call us at 866-568-8922.