8 Best Homeowners Insurance Companies in Nevada of 2023
In Nevada, homes need protection from the state’s severe wildfires and other natural disasters, as well as from risks such as theft or burglary.
While Nevada state law doesn’t require homeowners to buy homeowners insurance, most home lenders do, so it’s a good idea to safeguard your home, one of the largest investments you may ever make.
In sum, homeowners insurance protects your home—and the contents within—from the financial impact of unforeseen or unexpected disasters.
But choosing a policy can be overwhelming, as there are many insurers out there.
We’ve done the research to help you sort through your options and find the best homeowners policy for your needs.
The Best Home Insurance Companies in Nevada
- Liberty Mutual: Best Homeowners Insurance Policy for Discounts
- Travelers Insurance: Best Homeowners Insurance Policy for the Most Coverage
- State Farm: Best Homeowners Insurance Policy for High Financial Strength
- Allstate: Best Homeowners Insurance Policy for Being Claims-Free
- Lemonade: Best Homeowners Insurance Policy for Website and Mobile App
- Farmers: Best Homeowners Insurance Policy for Flexibility
- American Family: Cheapest Homeowners Insurance Overall
- Nationwide: Best Homeowners Insurance Policy for Rebuilding Your Home
Liberty Mutual: Best Homeowners Insurance Policy for Discounts
As the fourth-largest home insurer in the U.S., Liberty Mutual is known for its increased coverages that you can add to your basic policy, such as identity theft and inflation protection.
It also offers optional coverage for damage from water that backs up into your home.
Liberty Mutual already has affordable rates, but the discounts the company offers customers can significantly reduce your premium further because you may qualify for plenty of discounts.
The average monthly cost of homeowners insurance with Liberty Mutual starts above the national state average.
Read a full Liberty Mutual home insurance review.
Liberty Mutual Homeowners Insurance Discounts
- Multi-Policy Discount: If you bundle your homeowners insurance with any of Liberty’s other products, you can save money. These include business insurance, auto, and life, for example.
- Claims-Free: If you’ve gone without a homeowners insurance claim for five years or more with another insurer, you will probably get a discount if you switch to Liberty.
- Protective Devices Discount: By adding smoke alarms, deadbolts, fire extinguishers, fire alarms, burglar alarms, water leak detection, and shutoff devices, you’ll get a discount because your home will be safe and you are far less likely to make a claim.
- Newly Purchased Home: You get lower rates if you just bought a new home.
- Safety Program: If you go three or more years without making a claim, your rate will drop.
- Early Shopper Discount: Homeowners insured by another company may get a discount if they request a quote from Liberty Mutual before their current policy runs out.
- Insured to Value: If you insure your home at replacement cost rather than market value, you may get a lower rate.
- Military Discount: Liberty offers a discounted rate to active members of the military and veterans.
- Paperless Policy: If you receive all documents and information digitally, such as via e-mail, you may save some money.
Liberty Mutual Homeowners Insurance Pros and Cons
- Available in all 50 states and Washington, DC.
- Very affordable rates.
- The most discounts an insurer can offer.
- Useful website and mobile app.
- You can get a quote and file a claim on website or app.
- Extensive endorsement options.
- Endorsement for inflation coverage that adjusts coverage each year to offset expected inflation rates.
- Relatively few extra coverage options.
- May deny coverage if you own certain dog breeds.
- Coverage and discounts can vary by state.
- Poorly rated customer service.
- High number of complaints for customer satisfaction based on NAIC rating.
- Below-average customer satisfaction rating
|J.D. Power (out of 1,000)||805|
|A.M. Best - Financial Strength Rating||A|
|NAIC Complaint Index||2.37|
Travelers Insurance: Best Homeowners Insurance Policy for the Most Coverage
If you’re looking for a reputable, well-established homeowners insurance company that you can customize to make it more tailored to your needs, it might be worth checking out Travelers home insurance.
The company has many coverages that you can purchase and which are known as add-ons. A few that stand out include:
Travelers Homeowners Insurance Coverage
Special Personal Property Coverage
If your belongings are stolen or damaged due to disasters listed in your policy, this add-on will broaden or increase your coverage to pay for replacements or repairs.
Contents Replacement Cost
Another name for replacement cost coverage (RCV), the insurer will reimburse you for your belongings that have been destroyed or stolen at today’s prices rather than their depreciated value.
Additional Replacement Cost Coverage.
Travelers will grant you more or extra funds if your home is destroyed and the cost to rebuild it is more than your dwelling coverage limit.
Jewelry and Valuables
In most situations, the standard homeowners insurance only pays up to the policy’s limit, leaving you with insufficient coverage for your valuables.
This coverage will raise your limits for your high-value items or schedule them by putting them on a separate policy.
Water backup and sump pump discharge or overflow are the most useful and practical coverage. This rider adds coverage if drains, sewer lines, or sump pumps back up and cause water damage to your home and your personal belongings.
If your personal information is stolen and used fraudulently, Travelers can reimburse you up to $25,000 to repair your identity and monitor your credit, for example.
After a covered claim, if your home needs to be repaired or rebuilt and you use environmentally friendly materials, the rider will pay for the materials if you do so.
The average monthly cost of homeowners insurance with Travelers starts at $100 per month or $1,200 per year.
Travelers Homeowners Insurance Discounts
- Multipolicy: Discount for bundling more than one type of coverage.
- Claims-Free: If you haven’t made a claim for a period of time, you get a discount.
- New Home: You get a discount if you bought a home within the previous 12 months.
- Protective Devices: You can get a discount if you install smoke detectors, fire alarms, interior sprinkler systems, home security systems, or other protective devices.
- Green Home: You get up to 5% for having A LEED-certified “green home” as determined by the US Green Building Council.
Travelers Homeowners Insurance Pros and Cons
- Great for those who need a wide range of extra coverage options.
- Has high financial strength.
- User-friendly features on website and app.
- As a large insurer, Travelers has an advantage over smaller companies in absorbing the costs of a regional crisis.
- Discounts for eco-friendly homeowners.
- Coverage available in only 45 states and Washington, DC.
- High rates compared to other major insurers.
- Affordable for small policy limits but has high prices for policy limits over $75,000.
- When filing a claim, you’ll likely experience long turnaround times and subpar customer service.
- Reported inconsistent customer service for claims.
- Doesn’t insure mobile or manufactured homes.
|J.D. Power (out of 1,000)||794|
|A.M. Best - Financial Strength Rating||A++|
|NAIC Complaint Index||3.88|
State Farm: Best Homeowners Insurance Policy for High Financial Strength
Homeowners insurance protects your most important financial assets, so you'll want to be sure you're insuring your home and your personal possessions with a company that will be able to pay out your claim in the event of a disaster.
State Farm has been around for almost a century and has excellent financial strength ratings with S&P and AM Best.
This means that State Farm is more likely to fulfill its financial obligation to you when it comes time to file a claim.
This also means that State Farm has the finances to absorb the costs of a regional crisis, such as if a wildfire wipes out a whole community.
The average monthly cost of homeowners insurance with State Farm starts notably higher than the statewide average rate.
Read a full State Farm homeowners insurance review.
State Farm Homeowners Insurance Discounts
State Farm has a very limited lineup of homeowners discounts, and they vary by state.
- Multiple Line Discount: Purchasing various insurance policies from State Farm makes you eligible for auto and home insurance premium discounts and savings.
- Home Security Insurance Discount: If you install fire, smoke, or burglar alarms, or any other home monitoring system, you may be eligible for a discount.
- Roofing Discount: If your roof is considered a complete loss due to a covered peril, the insurer offers loss settlement for your roof on a replacement cost basis.
State Farm Homeowners Insurance Pros and Cons
- Agents offer personalized service.
- Low customer complaint ratio.
- Great for first-time homebuyers as website offers calculators and guides about homeowners insurance.
- AM Best rating is best possible ranking.
- Website and app make it easy to file claim or get quote online.
- Offers an option for increased dwelling coverage that extends your coverage limit when rebuilding costs are more than your stated dwelling coverage amount.
- No banned dog list.
- Lack of discounts compared to similar insurers.
- No discount if you never file claim, unlike almost all insurers.
- Mixed home insurance reviews.
- Options for home policy deductibles may be more limited than that of other insurers.
- The online quoting system may not be available for mobile or manufactured homes.
|J.D. Power (out of 1,000)||829|
|A.M. Best - Financial Strength Rating||A++|
|NAIC Complaint Index||1.77|
Allstate: Best Homeowners Insurance Policy for Being Claims-Free
Allstate is one of the largest insurance companies in the US, having been in operation since 1931.
They made our list because we wanted homeowners who never made a claim before getting rewarded for being so responsible.
In addition to its solid coverage, great financial standing, and cost-saving discounts, Allstate gives back if you take great care of your home.
So, if you don’t make a claim for a period set by Allstate, you can get a discount.
And if you switched to Allstate and hadn’t filed a claim with your previous insurer, you can get up to a 20% discount on your premium.
In addition, Allstate will also lower your deductible amount for every additional year you stay claims-free and keep your homeowners insurance with the insurer.
Allstate even offers something called “Rateguard.” It allows you to file one free claim every five years without causing your rate to rise.
The only downside is that Rateguard comes with an added fee. So, if you don’t make a claim, you may have just lost some money.
The average monthly cost of homeowners insurance with Allstate is $136 per month or $1,632 per month.
Read a full Allstate homeowners insurance review.
Allstate Homeowners Insurance Discounts
- Bundling Discount: Buy two or more policies to save.
- Claims-free Discount: Get a discount if you have no recent homeowners insurance claims.
- Early Signing: Sign your Allstate policy a week or more before your old policy expires to get a discount.
- New Homeowner: New home buyers get a discount, as do those who buy newly constructed homes.
- New Roof Discount: A new roof will save you some money on your policy.
- Protective Device Discount: Save if your home is installed with theft or fire protection devices.
- Responsible Payer: Make your payments on time to save money.
- Welcome discount: Switch your insurance to Allstate to save up to 10%.
Allstate Homeowners Insurance Pros and Cons
- Many discounts available.
- Many ways to customize your coverage.
- User-friendly website.
- RateGuard option allows homeowners to lock in their premium.
- HostAdvantage home-sharing coverage if you use AirBnB or Vrbo.
- Offers musical instrument and sports equipment endorsements.
- More than expected number of complaints to state regulators.
- RCV comes at an additional cost.
- Allstate’s premium is higher than some comparable insurers.
- No optional flood insurance.
- Personal property limit is lower than average in comparison to similar insurers.
- Rather than covering total loss, coverage is capped at a set percentage of the dwelling coverage.
|J.D. Power (out of 1,000)||815|
|A.M. Best - Financial Strength Rating||A+|
|NAIC Complaint Index||2.05|
Lemonade: Best Homeowners Insurance Policy for Website and Mobile App
Lemonade is an AI company, which means you do business with the insurer digitally, using the company’s well-regarded website and convenient app.
This online-only company provides great convenience.
The easy-to-use Lemonade website and app allow users to request a quote, file a claim, adjust their policy, and more without ever speaking to an agent, which can slow the process down.
Another standout is that Lemonade makes filing claims easy. Best of all, artificial intelligence handles 30% of most claims instantly.
However, that percentage only reflects simple property claims.
Lemonade informs its customers that some claims will take longer to process so that it can fully review an incident to approve the claim, and there will be property damage claims or liability claims that may take longer to settle.
The average monthly cost for homeowners insurance with Lemonade is also below the statewide average and a great choice for low-cost coverage.
Read a full Lemonade home insurance review.
Lemonade Homeowners Insurance Discounts
- Material Discount: Pay less if your home is constructed from fire-resistant materials, including masonry
- Fire Protection Discount: Get savings if you have safety measures in your home.
- Protection Equipment Discount: You also save if your home is equipped with protection equipment like burglar alarms.
- Gated Community Discount: Pay less if you live in a gated community.
- Bundling Discount: If you bundle home insurance with a pet insurance policy, you pay less.
Lemonade Homeowners Insurance Pros & Cons
- Now offers auto insurance, so there are available discounts for bundling home and auto and the opportunity for one-stop shopping.
- AI provides online quotes in minutes.
- Claims filing takes just a few minutes and some claims are paid instantly.
- Easy to make changes in coverage if use free mobile app.
- Services are online-only.
- Hard to reach live customer support.
- Insurer’s financial strength has not yet been rated.
- Offers only a few discounts.
|J.D. Power (out of 1,000)||870|
|NAIC Complaint Index||1.94|
Farmers: Best Homeowners Insurance Policy for Flexibility
Farmers is best in its class because its standard policy includes several money-saving features and different tiers of policies to purchase for enhanced flexibility.
The standard policy includes everything that a standard policy has to offer and allows you to purchase several features you may need, including replacement cost value (RCV), identity theft coverage, and higher limit coverage for valuable personal belongings such as jewelry or musical instruments.
This upgrade to the standard policy features higher policy limits than the standard. In addition, the package covers the cost of replacing your roof, as well RCV.
Premier offers even more, including higher limits on personal property coverage and RCV designed to fully reimburse you the cost of rebuilding your home after a covered peril regardless of your policy’s limits.
Each package is tailored to one’s need, and picking one means you can customize your policy without buying extra coverage you may not need.
However, Farmers has costly premiums that tend to be higher than that of its competitors.
The average monthly cost of homeowners insurance with Farmers is well above the Nevadan average.
Read a full Farmers homeowners insurance review.
Farmers Homeowners Insurance Discounts
- Insurance Deductible: The deductible declines each year you’re with Farmers, up to a certain limit.
- Claims-Free: You automatically get a discount if you haven’t made a claim for three or more consecutive years. After five years with Farmers and you still haven’t made a claim, your rate won’t go up if you have to file one.
- Home Safety: Making your home safe includes installing deadbolts on doors and strong locks on windows and putting up alarm systems.
- Smoke-Free: If you haven’t smoked for at least two years, you qualify for a discount
- Multi-Policy: If you bundle your homeowners insurance policy with another Farmers insurance policy, you’ll get a discount.
Farmers Homeowners Insurance Pros and Cons
- Claim forgiveness and deductible decreases.
- User-friendly tiered policies.
- Energy efficiency upgrades.
- Get quotes and manage claims on website.
- Educational insurance content also on website, perfect for new home buyers.
- Several standard features can help save money.
- Less common coverage options available.
- Discounts available for certain professionals.
- No 24/7 customer service.
- Wildly expensive premiums.
- Difficult to find detailed policy info online without directly contacting an agent.
- Some coverage only available as part of a plan.
- Limited state coverage.
|J.D. Power (out of 1,000)||792|
|A.M. Best - Financial Strength Rating||A|
|NAIC Complaint Index||0.56|
American Family: Cheapest Homeowners Insurance Overall
American Family has high ratings for affordability, customer satisfaction, and financial stability, and also offers rare discounts and coverages.
But what makes American Family stand out is that it offers the cheapest homeowners insurance rate and is well below the Nevada state average which is $915 per year or $76 per month.
A rare coverage example is American Family’s equipment breakdown coverage, which protects your home appliances and systems and devices that have been damaged due to mechanical, electrical, or pressure systems failure.
Systems are like your electrical or plumbing fixtures and appliances are like your refrigerator and washing machines.
And its unique deductible reward provides $100 credits for each year you remain claim-free.
American Family Homeowners Insurance Discounts
- Home Purchase Discount: If you’ve purchased your home within the last few years, your new home qualifies for a discount.
- Loyalty Discount: If you’ve had American for several years, you can get a discount.
- Generational Discounts: If you have American Family and your parents are existing policyholders, you may get an all in the family discount.
- Renovated Home Discount: You get a discount if you renovate your house, from electrical updates to plumbing issues to installing new kitchen appliances to repairing or replacing your roof.
- Smart Home: If you protect your home with security systems, water detection, and energy efficiency devices, you’ll not only make your home safe but also get a discount for doing so.
American Family Homeowners Insurance Pros & Cons
- Equipment breakdown includes electronics like laptops.
- Discounts for bundling home and auto insurance.
- Has network of local agents.
- Wide variety of optional coverage.
- Not available in as many states as other rated companies.
- Can't buy online without speaking to an agent.
- Can be more expensive than some competitors.
- Mobile app can seem like an afterthought.
|J.D. Power (out of 1,000)||842|
|A.M. Best - Financial Strength Rating||A+|
|NAIC Complaint Index||0.25|
Nationwide: Best Homeowners Insurance Policy for Rebuilding Your Home
One of the 10 largest U.S. home insurers, Nationwide stands out for offering you unique rebuilding or repairing costs for your home without added costs.
Nationwide’s basic policy includes the standard coverage you’d expect. But it also adds a form of insurance that other insurers usually charge extra for, which is ordinance or law coverage, extended replacement cost, and better roof replacement.
Ordinance or law pays, without an additional cost, to bring your home up to current building codes if your home needs to be rebuilt or repaired after a covered peril.
This form of insurance has a limit of up to 10% of your dwelling coverage. But note that higher limits are available; the downside is that you have to pay for the increase.
Extended replacement cost raises your dwelling coverage up to 20% above your policy limit if rebuilding your home costs more than expected.
And if your roof is damaged due to a covered peril, Nationwide will pay to rebuild your roof with stronger materials.
The monthly cost of homeowners insurance with Nationwide is also among those that average higher than the statewide average cost.
Nationwide Homeowners Insurance Discounts
- Multi-Policy: If you bundle home and auto insurance, you’ll get a discount.
- Protective Device: If you install smoke detectors, fire alarms, burglar alarms, and more, you’ll get a safe home discount.
- Claims-Free: Lower premium if you stay claims-free.
- Home Renovation Credit: If you also bring up to code your home’s plumbing, heating, cooling, or other electrical systems, you’ll get a renovating discount.
- Roof Rating: Save based on your roof’s age and surface type.
- Home Purchase: Receive a discount if you purchased a home within the last 12 months.
- Gated Community: You’ll get a discount when all car entrances to your community are protected at all times by security guards, residence cards or key-lock devices.
Nationwide Homeowners Insurance Pros & Cons
- Wide range of discounts including for new homes.
- Affordable premium.
- Eighth largest homeowners insurer in the country according to AM Best.
- First insurance company to offer a mobile app, which can be used to manage policy or file claims.
- Credit card coverage pays for unauthorized transactions or ATM activity, along with reimbursement for forged checks.
- Low rating for overall customer satisfaction.
- Add-on policy options quickly drive-up premiums.
- Replacement cost doesn’t come standard.
- Doesn’t insure mobile or manufactured homes.
|J.D. Power (out of 1,000)||816|
|A.M. Best - Financial Strength Rating||A+|
|NAIC Complaint Index||0.88|
How We Selected Homeowners Insurance Companies for Nevada
We used five criteria to choose the companies we included on this list.
We chose companies that offered the most discounts so that policyholders can save on their premium or offset a higher-than-average premium.
Coverage options are essential for any homeowner that wants to protect themselves and their property, so we looked for companies that allowed you to increase your property limits or allowed you to schedule your personal property to protect your items in full.
We chose companies that had websites and mobile apps that were easy to use for anyone. If you can get a quote online, or file a claim online, or check your policy info wherever you are using a mobile app, then that company was put on our list.
We looked at customer reviews from many trusted sites, as well as those posted on a company’s website.
In addition, we turned to rating sites such as AM Best, NAIC, JD Power, and BBB to see how an insurance company performed.
We prioritized insurers that had more affordable rates compared to the state average, the national average, and the Nevada average. In this way, potential policyholders could get the best price on their policies.
What is Homeowners Insurance?
Homeowners insurance will pay to have your home rebuilt and will replace your belongings due to a covered peril.
A covered peril includes theft, burglary, vandalism, and natural disasters such as fires, hurricanes, high winds, and snow buildup, to name a few.
If you didn’t have homeowners insurance, you will have to pay out-of-pocket for your destroyed belongings.
In essence, homeowners insurance protects you from unforeseen financial setbacks.
What is Covered in Homeowners Insurance in Nevada?
Every homeowners insurance has a basic policy that you must purchase first before applying for discounts or adding on additional coverage.
The basic policy typically covers the following.
If your house is damaged or destroyed due to a fire or a natural disaster, or a covered event that you could not have predicted, your insurer will cover the cost of rebuilding your home.
If you cause bodily injury or property damage to another person unintentionally or through neglect, your insurance will pay for any medical bills that the injured person racks up.
If the injured person ends up suing you, your liability coverage will pay for any legal fees and legal representation.
This policy pays if someone is injured on your property and needs medical treatment, regardless of who’s at fault. It also pays if you, a family member, or a pet like a dog injures someone elsewhere.
This pays to repair or replace your personal belongings that are stolen or damaged in a covered peril, whether that happens in your home or while you are on a vacation or a business trip. Basically, any place where you are not at home or far from home.
Loss of Use
If your home is destroyed and you can’t possibly live there due to health reasons or because it’s simply unhabitable, loss of use pays for basic living expenses, such as hotel stays and meals.
How Much is Homeowners Insurance in Nevada?
For comparison, the average cost of homeowners insurance in the United States is $109 per month or $1,312 per year.
Nevada's average cost is a healthy margin below the national average at $76 per month or $915 per year.
But if you do your research, you can even find coverage below even the Nevada average.
Rates will vary by type of policy, amount of coverage, deductible, and the location of your property.
|City||Annual Average Cost|
What Are the Factors That Impact the Cost of Homeowners Insurance?
An insurer needs to evaluate certain risk factors before setting the policy premium.
You may end up paying less or more for your premium in Nevada due to these factors.
In addition to the below, insurers look at how near you are to flood zones or earthquake faults, as well as the cost to replace or rebuild your house in the event of a total loss.
If you file a claim, the insurer will believe you are more likely to make another claim and will increase your rates to keep costs down.
If you have a high credit score, the insurer will think you are more likely to pay your premium on time each month.
But if you have poor credit, the insurer will perceive that you are an at-risk person who will more likely miss payments or file claims.
The area where you live affects your premium. If you live in a safe neighborhood with a low crime rate, and your home is close to a fire hydrant or a fire station, you’ll pay less.
A policy with a low deductible is more costly than those with a high deductible.
The chances of being involved in a violent crime in Nevada are 1 in 180. The chances of becoming a property crime rate are 1 in 38 in Nevada.
Since Nevada in general has a low crime rate, this means that crime will less likely influence your policy rate.
Age of Your Home
Many insurers offer discounts for new homes and charge more to insure older ones due to the perceived notion that an older home may not be up to code. That includes your electrical and HVAC systems, your plumbing systems, as well as your roof.
If you choose to increase your coverage for high-cost belongings like jewelry or schedule them separately, your rate will increase.
Common Causes of Loss and Damage in Nevada
Nevada suffers from many natural disasters.
Once you understand the common cause of loss in your area, you may better know what coverage options are appropriate for your policy.
Coverage options may come standard in a basic policy while others are offered at an additional cost.
Some common causes of home damage in Nevada include:
As a generally arid state, flooding wouldn't seem like an obvious peril. However, floods are very common, especially in southeast Nevada.
Other kinds of water damage, including damage from water backup, heavy rains causing roofs to leak, and broken pipes, are also common in Nevada.
Wildfires and Smoke Damage
Like many states in the western part of the country, wildfires are a threat for much of the year. Since Nevada is the driest state in the United States, wildfire can cause widespread damage.
Hailstorms and Thunderstorms
These storms can cause damage to the exterior of your home and can compromise its structure, leading to interior damage.
Parts of Nevada are at an increased risk for earthquakes, which can happen unexpectedly and cause devastating damage.
What Natural Disasters in Nevada are Covered in a Basic Policy?
All unexpected weather conditions in Nevada are covered in the standard policy, which means you don’t have to buy more insurance to protect your home from, say, wildfires.
However, there are two exceptions.
A standard homeowners insurance policy does not cover flood damage and earthquakes.
Nevada is susceptible to an average of 85 earthquakes each year.
Nevada ranks third in the country for major earthquakes (after Alaska and California).
This means that Nevada homeowners should seriously consider earthquake coverage.
Earthquake coverage comes in the form of an endorsement to your policy and covers losses that result from land movement.
The homeowners insurance endorsement for earthquake coverage in Nevada carries an additional cost.
A home insurance policy, no matter where you live, doesn’t pay for water damage due to floods.
While an insurer may cover water damage if your roof leaks due to a hurricane, it won’t cover flood damage from the same hurricane.
Note that both flood and earthquake insurance is costly and will drive up your rate.
What Are the Types of Homeowners Insurance?
There are two primary types of homeowners insurance policies: actual cash value (ACV) and replacement cost value (RCV)
If your home is damaged, replacement cost will pay the actual cost of rebuilding your home even if there are increases in inflation, zoning updates, labor, materials, or other expenses.
And if your personal property is damaged, RCV will pay for your items in full and at today’s prices.
On the other hand, ACV will pay for repairs up to the preset limits of your policy, and no more.
If that limit is $300,000 and repairs cost $400,000, you’re responsible for the difference.
And if your belongings are stolen or destroyed, ACV will not replace them at their full cost but rather at their depreciated value.
In short, RCV will pay you in full while ACV will pay you a depreciated cost.
Do You Need to Purchase Additional Coverage?
Additional coverage comes in the form of add-ons, endorsements, and scheduled personal property.
For most homeowners, endorsements are a necessity.
That’s because if you have expensive artwork and collectibles, a basic policy won’t cover the full cost if these items were destroyed or damaged in a covered peril.
You’ll have to pay any remaining balance to replace your valuables.
But if you increase your personal property coverage with an endorsement, you’ll be fully protected.
You can also schedule your expensive items if they are worth more than your policy limit.
Scheduling means you list your valuables separately on your policy and insure them for their actual value.
The benefit to scheduling expensive items is that you are covered for anything that could happen to them.
Just make sure you get your belongings appraised, as most insurers will require it.