Replacement Cost On Contents Coverage

Horace Mann Insurance

Two Types of Personal Property Coverage

Your house is your home.  You’ve made it a home with love and care and the items you’ve chosen.  You don’t see dollar signs on your favorite lamp or sofa or television.  But if you have a covered loss, that’s exactly what a claims adjuster will need you to do – put a dollar amount on each item. 

There are two different coverage choices to choose from when insuring your personal property: Actual Cash Value Coverage or Replacement Cost on Contents Coverage. The difference between the two involves depreciation.  

Actual Cash Value Coverage

Actual Cash Value is the actual value of an item today (new cost minus depreciation). It is not the amount you paid for it or the amount it would cost to replace it. Even though your item may be in pristine condition, it is now used. Think of actual cash value as what you might get if you were to sell the item.

Replacement Cost on Contents Coverage

Replacement Cost on Contents offers you extra coverage.  It protects possessions like televisions, furniture, and more. It covers the cost to fully replace your personal property if it is damaged or destroyed by a covered loss. For example, if your leather recliner is destroyed in a covered loss, Replacement Cost on Contents Coverage will pay the full cost to replace it. It doesn’t matter if you bought the recliner two months ago or ten years ago.  You will be compensated to replace your recliner with a new one of like kind and quality.

While Replacement Costs on Content costs more up front, the additional coverage could be important if you have a claim.

For more information on either coverage, contact your local Horace Mann insurance agent.

Homeowners and renters insurance is underwritten by Horace Mann Insurance Company, Horace Mann Property & Casualty Insurance Company, Teachers Insurance Company and Horace Mann Lloyds (in Texas).

WBPI-0016 (Aug. 12)

© 2023 Horace Mann Educators Corporation

CUSTOMER SERVICE Call 800-999-1030

  • Auto and Property
    M – F, 7 a.m. - 8 p.m. Central time.
  • Life, Annuity and Group
    M – F, 7 a.m. - 7 p.m. Central time.