2. misc-audio
  3. 146345-107733

Home owner's insurance question

Reading through my policy it would appear that through the personal property section an audio system is covered for loss.  No special rider is necessary.  But the replacement cost section states that the insurance company won't pay until you actually replace your stereo system.  If one makes a big claim, let's say $100,000, how does one pay this first if you're going to get paid afterwards?  What if you don't have the money to re-buy your system or you choose not to replace it?  Can any insurance experts explain to me how these home owner policies actually work?
philharmonicpete

Showing 3 responses by cleeds

cleeds
6,093 posts
 
ericsch
... Yes, of course there are some exclusions.
That's not what you wrote:
unlike the dwelling which is covered for "all risks"
cleeds
6,093 posts
 
ericsch
... personal property is covered for specific named perils, unlike the dwelling which is covered for "all risks" ...
It’s uncommon for a homeowner’s policy to cover all risks. For example, you need separate flood insurance if you want that protection. Many policies exclude earthquake coverage - that requires an additional premium. It’s always best to read your policy - although few do - and consult with your agent.

"Civil insurrection" is another common exclusion.
cleeds
6,093 posts
 
I once suffered a major loss, and the insurance company actually purchased the equipment for me. Some of it was shipped to my house, other items I picked up at the dealer.
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