Am I Being Paranoid?

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  1. Okay so depending on where you are located and who you are insured with, your handbags are covered under your homeowners/ renters insurance policy for named perils e.g. theft, fire, water loss, etc... under Coverage C - Contents. It's a good idea to make sure you have adequate coverage, also verify that they are covering for replacement value, not actual cash value. Make sure you read your sublimits to verify there are no coverage caps on fashion accessories/handbags (I was a product manager and actually put one on one of our products). However, if you are concerned about flood, you need to purchase a separate policy because damage from flood is excluded from a normal homeowners/ renters policy.
     
    ChanelCanuck likes this.
  2. The most up-to-date policy will cover replacement cost of your items. Make sure you have replacement cost coverage!!! You need to READ your policy and also call your agent to be sure. In that case, you should insure for whatever the cost is to fully replace your bag (if it’s still available). If not still available, replacement cost insurance would pay for a new bag of similar kind and quality.

    Some policies are only for “actual cash value,” which means depreciation is applied. Not good.


    P.S. as I read more posts, I see somebody already addressed most of these points.

     
    ChanelCanuck likes this.
  3. Flood is not usually excluded from a renter’s policy. Only homeowner’s. But definitely check with your agent. I used to be a licensed insurance agent, but some contracts may be different if you live outside of the U.S. or have a smaller insurer.

     
  4. What’s the difference between replacement value vs actual cash value? From what I googled, actual cash value is replacement value minus depreciation. Doesn’t the replacement value already account for depreciation?
     
  5. Replacement cost means you get a new one (or the money that a new one would be worth so you can go and replace it). ACV (actual cash value) with depreciation means you get what a used one in your bag’s age and condition would be worth.

    Most personal property policies (homeowner’s or renter’s insurance) are written with replacement cost, but you definitely have to check to be sure.
    P.S. They also amost always include personal liability insurance in case you or your minor/underage children are held liable for accidental injury to a person or accidental damage to their property.

     
    ChanelCanuck likes this.
  6. Thanks for the info!