One question that homeowner’s and renters are likely to face is over the issue of actual cash value and replacement cost coverage. In the state of New Mexico there is a big difference between to the two terms that can mean disaster in the event of a total loss for insurance holders. Here are some things that you need to know about the terms and how they can affect your claim payout.

What Actual Cash Value and Replacement Cost Coverage is all About

Understanding your home policy is the first step to being financially secure. Actual cash value is a term that can mean a major headache for policy owners. Let’s say for a moment that you buy a brand new 50 inch flat screen plasma with all the latest technology added into it. You will easily pay several thousand dollars for the television. Each year the value of the television will decrease much like the value of a car does. This is called depreciation. Five years go by and you have a fire that destroys your new television. So you file a claim and receive a check for $100 instead of the cost to replace the unit. Actual cash value will only pay what the unit is worth not what it will cost to buy a new one.

Replacement cost coverage is the opposite of actual cash value. In the event that you have to file a claim you will receive the value of the television of what it will cost to replace it with a like new version of the unit. If you have any questions about what your policy covers in terms of cash value or replacement cost, then feel free to call an independent agent near you. They can help you determine what your policy covers and they can even make changes to make your policy better for you.

If you are a business owner, you probably know a bit about what types of insurance are important for your company. For instance, if you have a fleet of company vehicles, it is important that you have commercial auto insurance to cover these autos. However, there is one other type of insurance that is less understood—workers compensation insurance.

This coverage can make a big difference in protecting your company and assets if your business happens to suffer from a catastrophic accident. If someone is injured on the job, you would have to pay for their workers compensation claim out of pocket, unless you are covered by a workers compensation policy.

If you live in or around Las Cruces, Albuquerque, or Rio Rancho New Mexico you have plenty of options when it comes to commercial workers compensation insurance. You could contact an insurance company yourself and try to get the coverage you need, or you can contact an independent agent.

While you could go through the yellow pages and choose an agent, working directly with us is often the best option. We have an extensive knowledge of workers compensation insurance. This will help you make sure you are covered in case one of these issues crops up. Additionally, working with an agent will often save you money. An agent can compare rates from several insurance providers to make sure you are getting exactly what you need while paying as little as possible. Check out our services today and find out how we can help you get started putting together the perfect workers compensation policy to meet the needs of your company. Feel free to contact us with any questions or concerns about insurance benefits of all types, and let us help you.