- The
NAIC survey also found that 43 percent of U.S. adults with homeowners or
renter's insurance owned policies that provided a replacement cost
payout. Of the remaining consumers, 27 percent indicated their policies
insured their homes for the actual cash value, while another 28 percent
did not know which type of coverage they purchased. Actual cash
value is the amount it would take to repair or replace damage to a home
and its contents after depreciation. Replacement cost is the amount it
would take to replace or rebuild a home or repair damages with materials
of similar kind and quality, without deducting for depreciation.
- The NAIC survey also found that 43 percent of U.S. adults with
homeowners or renter's insurance owned policies that provided a
replacement cost payout. Of the remaining consumers, 27 percent indicated
their policies insured their homes for the actual cash value, while
another 28 percent did not know which type of coverage they purchased. Actual cash value is the amount it would take to repair or replace
damage to a home and its contents after depreciation. Replacement cost is
the amount it would take to replace or rebuild a home or repair damages
with materials of similar kind and quality, without deducting for
depreciation.
- The NAIC's national survey revealed a significant lack of
preparedness among consumers in documenting their belongings. Nearly
half - 48 percent - said they did not have an inventory of their
possessions. Of those consumers who reported having a checklist, 32
percent had not taken any pictures and 58 percent had no receipts
validating the cost of their possessions. In addition, 44 percent of
respondents acknowledged that they had not stored their inventory in a
remote location.
