How To Determine The Value Of Your Personal Property

There are two kinds of personal property insurance you can choose from - Replacement Cost and Actual Cash Value.

Replacement Cost Coverage - What's the Advantage?

The Hartford appreciates the value of your possessions. With full Replacement Cost Coverage, the value of your personal property is simply what it would cost to buy the same article(s) new. Replacement Cost coverage pays the full cost of replacing your personal property, subject only to your policy limits and the deductible amount you have selected. And your homeowners coverage is updated automatically to keep pace with inflation, throughout the life of the policy.

Take a moment to check your current homeowners policy. If you don't have the full replacement cost feature, you might not have enough protection. To make sure that you have this valuable coverage, contact your local independent agent who represents The Hartford.

Actual Cash Value

Unless you have purchased Replacement Cost coverage as an option, your homeowners policy will pay losses based on the Actual Cash Value of your property, after you meet your deductible. Actual Cash Value is the cost of replacing an item at the time of the loss minus normal depreciation.

To determine the actual cash value of your possessions (if you don't have replacement cost protection):

• Estimate the cost of replacement (what it would cost you today to buy the same article new).
• Subtract the estimated depreciation (from any cause whatsoever, including wear-and-tear, obsolescence, etc.). For estimating purposes only, you might use 10% per year as a depreciation factor.

For example: Your stereo system cost $800 and is 4 years old. Today, that same system would cost $1,000. After subtracting the 40% depreciation (10% per year, for four years) from the replacement cost ($1,000), the current Actual Cash Value of your stereo system would be $600.

For more information on Personal Insurance Products,
call your local Hartford agent.
Or, to speak with us directly, send an e-mail to:
plinfo@thehartford.com