Home owner's insurance question

Also, keep in mind that personal property is covered for specific named perils, unlike the dwelling which is covered for "all risks". A rider can be purchased to cover PP for all risks.

As an ex insurance guy, @@dweller and @tuberist are correct. You get the actual cash value of each irem first and then the remaining $ after you actually replace the irem. The policy covers full replacement cost only if you replace. You can replace with a similar item, it does not have to be the same manufacturer or model.

@cleeds Yes, of course there are some exclusions. I was just trying to keep it basic. After all, this is an audio forum.

@cleeds As I wrote, every insurance policy has exclusions, auto, property, life, personal article floaters, boat, etc. etc. "All risk" is a term that is used to differentiate from a named peril policy.

@koestner If the speaker is no longer in production, its replacement cost would be the current market price or actual cash value.

If the speaker is still in production and has a replacement cost of $15,000, the policy would cover the cost of replacement. However, the insurance company has the option of replacing it themselves at their cost. Sometimes they can acquire the item for less than retail. If you choose to buy a more expensive speaker, you can only collect up to the RC value of your claimed speaker. Keep in mind, I am referencing the most common Homeowners Policy known in most states as a HO-3 policy. Best to check with your company or agent.

@mrdron If by "capped" you mean your overall policy limit, that doesn't sound right. You get to choose the policy limit because you know what you own and you are paying the premium. If your insurer won't increase your limits at your request move on. Kudos on having Renters Insurance, many renters don't bother getting it.

@philharmonicpete    Yes, it is legal jargon saying you have 180 days after the ACV payment to collect the rest up to the actual amount spent to replace the item. In some situations, insurers will grant an extension if  requested. 

@ricmci  There is no limit on audio equipment other than the policy limit. However, there may be a dollar limit on "Media". You will have to check your policy under the heading "Limits on Certain Property" or "Property We Do Not Cover" or contact your insurance company.

Finally, Insurance companies are highly regulated by the individual states and coverage/limitations, etc. can vary from state to state.    

@dave1980 Correct, there is no co-insurance requirement on personal property. I was going to mention that earlier, but we seem to be getting in the weeds here.

@Tatyana69   Rubbish, a adjuster cannot "decimate" your claim. That is called bad faith and is illegal. The key is to have documentation to support your claim, photos, receipts, etc.

@philharmonicpete  In your scenario, you would prepare an inventory of your major items, stereo and otherwise.

Lets say you had an amplifier with a replacement cost of $20,000 and the actual cash value (used value) is $15,000. The insurance company would pay you the $15,000 and as soon as you submit documentation that you have ordered the replacement, you would get the additional $5,000. You could replace it with a more expensive amplifier, but can only collect up to $5000. Also, in most states insurance also pays the sales tax.

Sure it's a PIA, but having a total loss fire by definition is a PIA, a bigger PIA without insurance.