Your Guide to Replacement Cost Insurance
 The cost of replacing stolen or destroyed property can be a heavy financial burden. Often times, states require certain property insurance coverage for common disasters in the area. For example, businesses that reside within tornado alley are most likely to be required to have tornado insurance in case of a natural disaster.
If a natural disaster does strike, having proper insurance coverage can save your business a significant amount of money in replacing or fixing damaged property. There are two ways that insurance companies evaluate property: replacement cost coverage (RCV) and actual cash value (ACV).
 Replacement Cost Coverage vs. Actual Cash Value
 Actual cash value can help you recover the cost of your damaged or stolen property at the value it currently is. This means that if your TV is stolen or damaged, but is 10 years old, the actual cash value will be lower than the cost you paid for it. Alternatively, replacement cost insurance can help you recover stolen or destroyed property at the price of a new or like new version.
 For businesses with expensive commercial appliances and inventory, replacement cost insurance can be the difference between thousands of dollars when in comparison to actual cash value coverage.
What Are Holdback Claims?
 Holdback, or depreciation, refers to money held by the insurance company until you can show proof that your claim was spent to replace your losses. The holdback is determined by the age and condition of the property involved in the claim. Personal property replacement cost without holdback is possible if you submit a claim within two years and show receipts that you have replaced the item.
Do All Policies Have Replacement Cost?
Not all policies have replacement cost, so it is important to make sure that you have this type of coverage within your policy in the event of property damage or loss. Most property damage or loss is unexpected or out of the business owner’s control, such as an earthquake, wildfire, or theft. Making sure you have the right coverage beforehand can save you hundreds, if not thousands, of dollars in replacing or fixing your property. It is always safe to be more prepared than underprepared.
How to Ensure Your Claim Is Approved
When trying to recover financially from property damage or loss, you will want to make sure that your claim has the best chance of getting approved. Unlike an insurance company assessing your property, a public insurance adjuster assesses your property on your behalf to help you file a claim. Public insurance adjusters have the expertise to assess the coverage that you have to maximize the benefit of your policy.
Property damage or loss can cause serious financial and emotional stress, which can be a heavy burden for business owners. Having a public insurance adjuster on your side can help relieve you of stress while dealing with the aftermath of a disaster.
You should always maintain an inventory of all property in case disaster strikes. If disaster does strike, you will be better prepared with a full inventory of anything that could contribute to the amount you receive from a claim.
