Most insurance will repair your home or auto to its original condition, but if the insured property is totaled or stolen, the standard policy is limited to its blue book value or in the case of personal property its depreciated value. Your policy normally has a specified limit on replacement of the building on your property. Riders are available that will automatically adjust coverage for inflation or will provide replacement value coverage.
Otherwise, the insured must be careful to keep policy coverage up to date to allow for inflation.
Related Fool Articles
Recent Mentions on Fool.com
- 4 Reasons You Should Watch This Under-the-Radar Stock on Your Watchlist
- AT&T Inc. Earnings: Will Price Wars Crush Growth?
- How Are Orphan Drugmakers Faring in the Great Biotech Downturn?
- What's Wrong With These 3 Dow Stocks Today?
- When Internet Growth Collapses
- 2 Auto Executive Salaries Investors Need to Know About