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 1 response by millercarbon

millercarbon's avatar
millercarbon
12,531 posts
 
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?  


Yeah. If only we had some way of providing money now and paying it back later. Like, a credit. Of course having the money now is worth more than having it later, so you would probably have to pay back a little more than the credit. Lotta complicated details to be worked out. Probably never happen. Not in a million years.
More to discover