It is a good idea to have an insurance review with your agent at Hedgepeth-Hutson Insurance Services Inc. in Nashville, NC at least once per year and any time when you are considering making significant and costly customization upgrades.
It is a better strategy to talk to your agent to make adjustments to your RV insurance coverage before you make the customization, because you will want to have adequate insurance coverage in place as the customization work begins with its installation.
For example, you might want to install a satellite dish to capture a signal for your digital entertainment system. The best way to handle this project, with regard to adequate insurance, is to contact your agent and provide copies of the written bid and cost estimates for the new system, so the insurance coverage can be adjusted in alignment with the timing of your customization work.
Replacement Cost vs. Actual Value
One major thing to think about is the difference between carrying insurance for replacement cost versus actual cash value. Replacement cost insurance is usually greater than actual cash value because, for the actual cash value, you will reduce the amount insured by subtracting an amount for depreciation. For example, a satellite dish system might cost $1,500 and have a five-year life. If, after two years, it is lost or destroyed, the replacement cost would be $1,500 (or maybe more if the price went up), while the actual cash value would be $1,500 minus $300 annual depreciation x two years = $600 or a total of $900. These numbers are just for example purposes and your circumstances may be different, so discuss this with your agent.
Talk to your agent at Hedgepeth-Hutson Insurance Services Inc. in Nashville, NC to get a detailed explanation about how to carry adequate coverage and the benefits of replacement cost insurance as well as all your other RV insurance needs.
