Click to Call

805 Washington Dr, Suite A2
Arlington, TX 76011

Get Directions

Texas Insurance Blog

Terms to Know When Choosing Your Home Insurance Policy’s Personal Property Coverage

Personal property coverage is an important protection included in most home insurance policies. You might have several options when setting up this part of your home insurance policy. Here are some terms to know so you can make informed decisions about how your belongings are protected.

Actual Cash Value (ACV)

Actual cash value is a way of valuing insured property. The ACV value of your belongings is essentially what they’d sell for at the time of a covered event. The method takes into account depreciation, which can be quite substantial.

If a claim is made, an ACV usually pays out the value of the items at the time of loss, not what it would cost to buy them new. This type of coverage may result in lower premiums, but it also means you might not receive enough compensation to replace lost or damaged items fully.

Replacement Cost Value (RCV)

In contrast to ACV, replacement cost value coverage typically pays the amount necessary to replace lost or damaged items. It’ll usually pay enough to purchase new items of similar kind and quality without deducting depreciation. 

RCV coverage ensures you can replace your personal property without additional out-of-pocket expenses. While RCV policies typically come with higher premiums, the added protection is worth getting for many homeowners. We at InsPeak often recommend this option.

Worldwide Coverage

Worldwide coverage generally extends the protection of your personal property beyond the confines of your Arlington, TX home. This means that your belongings are covered against loss or damage no matter where they are in the world, except for a few exceptions like war zones. 

Get the Right Personal Property Coverage

Choosing the right personal property coverage for your home insurance policy requires understanding your needs and coverage options. For help going through the various options, contact us at InsPeak if you’re in Arlington, TX.

Servicing States

  • Texas
  • Georgia


Partner Carriers

  • ACCC
  • Alinsco
  • All Risks
  • Gainsco
  • Hiscox
  • Infinity
  • Kemper
  • Progressive