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Does replacement cost
insurance pay immediately?
No, insurance companies will adjust your loss on
an actual cash basis (replacement cost less depreciation) then apply your deductible. If
you have replacement cost coverage the amount between replacement cost and depreciation
(replacement cost less deduction for use) is called the holdback. When you finally
replace any and all items subject to the loss your insurance carrier will then pay the
amount of the holdback. This replacement must be done within 180 days of the initial
settlement of the loss. Always keep your receipts and all items must be replaced by items
of like kind and quality.
If I move my personal property to another location for
storage do I need to purchase a separate policy?
The answer is yes if you have more than 10% of
your policy personal property limit in storage. Also the internal limit on certain items
(silverware, jewelry, etc.) will still apply. Therefore if you have in storage personal
property valued over 10% of your personal property limit of your homeowners policy you
need to purchase an additional policy to cover your assets.
When I lease an automobile will the insurance I have
purchased (collision and other than collision coverages) in the event of a total loss
would payment cover the outstanding balance of my lease?
Not always. Some companies will
offer an endorsement to pay the outstanding lease. If your company does not
offer the endorsement negotiate into your lease that the leasing company will accept
book value payment in lieu of full payment.
Does replacement cost
insurance pay immediately? 
No, insurance companies will adjust your loss on
an actual cash basis (replacement cost less depreciation) then apply your deductible. If
you have replacement cost coverage the amount between replacement cost and depreciation
(replacement cost less deduction for use) is called the holdback. When you finally
replace any and all items subject to the loss your insurance carrier will then pay the
amount of the holdback. This replacement must be done within 180 days of the initial
settlement of the loss. Always keep your receipts and all items must be replaced by items
of like kind and quality.