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
- 1 Reason Shareholders of This Apple, Inc. Supplier Might Be Disappointed With iPhone 6
- Is JetBlue Airways Being Too Nice to Its Passengers?
- Your Guide to Uncovering the Best Seller Financing Deals
- 5 Secrets to Increasing the Profit of Your Rental
- Home Depot's Record-Breaking Credit Card Breach Could Have Been Much Worse
- Can This Advertising Innovation at "The New York Times" Save Sinking Ad Revenue?