Family Living
Focus
Bob Thee
Lancaster County
Is Your Homeowners Insurance
Adequate?
If your home were to be
damaged by fire, how much of the
loss would be covered by your
insurance?
It may not be what you think if
your home is not considered to be
fully insured. All homeowners
insurance policies contain a
replacement cost provision on los
ses to the dwelling. So if you
experience a loss, the insurance
company must pay for the full
amount of replacing the damage to
the home, less the deductible,
right? Wrong.
Many people don’t understand
how the replacement cost provi
sion works. First, there are two
types of replacement coverage.
Replacement coverage to the
dwelling, which is standard on
most policies, and an optional
replacement cost coverage or
endorsement for personal proper
ty-
Second, there are two ways
insurance companies will value the
loss. One is the actual cash value,
or the depreciated value. The other
is the replacement cost. That is the
cost of rebuilding the structure
with materials of the same kind
and quality at current costs or the
cost of replacing the personal
property. Replacement cost should
not be confused with market value
UMCLdimED FREIGHT CO. and LIQUIDdTIOn SALES !£!£
7
Almond or Black
Ready to Assemble
Table in one box
Chairs in one box
Reg. Ret $499.95
S&.A. *169.88
f TABLE
LAMPS
Only 500 to sell
•t $19.00 each.
Style* vary from shown,
wood, metal, and/or glass.
28* <■ 32” High
Regular Retail from
$79.00-$109.00
CLAIM YOUR BARGAIN
With Bassett Or‘
Serta Bedding Purchase Only.
We Absolutely Have The Best Prices Ob Bedding
BASSETT MATTRESS O BOX SPRING
Thu is top of the ine oeddtng and one of •• bed deals that we ever made 1 Tnese am a? overruns,
cancellations ano ctoae-oul fibres Th« is one heck of a once on bedding
complete with a warranty of one ft* year rwlmrrmH a! no ctom.
Single
Double
Queen
King
•ERTA MATTRESS tf BOX SPRING
' We Hew Tie New INS Coven
Reg Ret $609 95 OUR CASH PRICE $149.95
DOUBLE Reg R«t $749 95 OUR CASHPRICE $119.95
QUEEN Reg. Ret $889.95 OUR CASH PRICE $249.95
KING. Reg Ret $1129 95 OUR CASH PRICE $29995
DELCO MATTRESS AND FOUNDATION
Reg Ret $649 95 Sole Price *lB9 88
Reg Ret $599 95 Sale Price ‘129 88
Reg Ret $319 95 Sale Price *99 88
King
Queen
Double
or loan value of the house. The
market value is what the house will
sell for, but it may cost considerab
ly more to rebuild the home
because of the type of materials
and workmanship of the original
house.
Replacement cost coverage on
the dwelling provides that if, at the
time of loss, the amount of insur
ance covering a building is at least
80 percent of the replacement cost
of the building, the loss will be
paid on a replacement cost basis.
Being paid on a replacement cost
basis means that the loss will be
paid without a deduction for depre
ciation up to the limit of the policy.
The 80 percent figure works as a
co-insurance provision. That is, in
the event of a total loss, you are
responsible for the last 20 percent..
Alternatively, if the building is
insured for 100% of the replace
ment cost coverage, the insurance
company will pay the full cost to
rebuild the structure, even if the
cost exceeds the amount of
insurance.
So far, we’ve been looking only
at the case of a total loss. Suppose
you suffer only a small or partial
loss. Here again the 80 percent co
insurance provision becomes
important If your home is insured
for at least 80 percent of the
replacement cost of the dwelling,
you will still be insured in full for
SWIVEL ROCKER
WITH OTTOMAN
Available n light blue, green S mauve
Reg Ret $449 95
OUR CASH PRICE
$89.04
IST QUALITY!
This order vyas
cancelled
a big chain.
3 PC. EARLY
AMERICAN
Sofa, Loveseat and Chair
SPECIAL Reg. Retail $1339.95
A . j|no OUR CASH PRICE
$449.88 $849.95
OORCiSHRo'CE
$?59 95
$309 95
$399 95
$519.95
Res. Ret
$589.95
$729 95
$85995
SIQ99 95
piecesi
‘rices include
STUDENT
DESK
Complete w/Chatr and*
Ad) Lamp
Adj Lamp
Reg Ret
Mst69 95
OUR CASH PRIGS
$0998
With Coupon
*39.00
This Va/uaWa Couponl mi^^t
SECTIONAL SLEEPER
Reg. Retail Price $2388.95
Dealer Relueal
OUR CASH PRICE $1049.95
Feature* a lev—l with tide by aide
redlnare end center eontela glue
Mia with hlde e bed
WITH COUPON $ 889.88
SPECIAL
$129.95
$159.95
$219.95
$279.95
losses of less that the policy limit.
For example, on a house whose
replacement cost is $lOO,OOO and
is insured for 80 percent of
replacement cost, a loss of $15,000
would be covered in full, less the
deductible. Assuming the deducti
ble amount of $250, the first $250
(the deductible) is your loss. After
that, any amount up to $BO,OOO is
covered by the insurance. And any
loss greater than that is yours. But
if your coverage is for less than 80
percent of replacement cost, you
would not be reimbursed in full for
partial losses. In that case the
amount the insurance company
would pay would be only a fraction
of the loss. The fraction is deter
mined by the ratio of the actual
coverage to 80 percent of the full
replacement cost. If, for example,
your house was insured for only
$60,000 when full replacement
cost would be $BO,OOO, the insur
ance company would cover only
75 percent—s6o,ooo divided by
$BO,OO0 —of the loss after the
deductible. The maximum is still
the limit set by the policy. One rea
son people get in trouble is because
they have not adjusted their policy
limits to account for inflation or
higher construction costs. A home
that was once fully covered is no
longer because its replacement
cost has increased over the years
while the insured amount
remained the same. An inflation
guard endorsement on the policy
will take care of this situation by
automatically increasing the
coverage. As explained earlier, an
unchanged value or loss in market
value is irrelevant because it is the
replacement cost that is the critical
factor.
For personal property, the stan
dard homeowners policy will cov
er losses up to an amount that is 50
percent of the coverage on the
dwelling. Losses are in terms of
WICKER
ROCKER
White ,
Regular Retail
$229.95 /
CASH f
PRICE W4J' \ /
*69.95
actual cash value, that is, the
depreciated value. Coverage for
replacement value of personal
property is available for a nominal
additional cost. This would mean
that the cight-ycar-old television
that still works perfectly would be
replaced with a new television of
comparable quality rather than
Father And Son
(Continued from Page B 2)
.most immediately.”
Pastures have been divided off
to allow separate grazing for the
best milkers, the slow milkers, and
those which are about to come
fresh.
Recent winters have not been
kind to the farming industry. Se
veral years ago, heavy snows
caused a bam to collapse which
caused consequences to the dairy
herd. “We couldn’t get them under
roof, the weather was bad, and we
had a number of cows get sick,”
Don recalls.
“We had insurance on the barn
but had trouble getting the insur
ance company to pay up. We were
glad when everything finally got
setded.”
“We even had trouble with
breeding. We’ve finally been able
to solve that problem by getting a
bull and this past winter, we’ve
had a healthy herd again.”
This past winter caused some
problems with the alfalfa. “We’re
not sure if it was the flooding or
ALL WOOD
BUNK BEDS
Scallop Pattern
Reg. Ret $499.95
Our Caeh Price
*229.95
SPECIAL Your
,k — ' Choteo With or
-jgp “ 1 J. Without Bookcaso
$ 189.95
' -4 V dam Sodding
not includad
2 PC. COUCH
SET
Regular Retail $1789.95
BU QFA E
$ 319.88
GET THE CHAIR
sm
5 PC. BEDROOM
Cloaa-Out Model 248 • Amolra Cheat,
Headboard, Mirror, bight Stand, Oraaaar
2nd Night Stand FREE with guichaae
Lancaster Farming, Saturday, June 22, 1996-B3
"5
(CANTED) nONT CURIO
Cherry finish
5 glass shelves
two doors
lighted interior
mirrored bock
Volume Buy I!
Reg. Ref. $559.95
OUR SPECIAL
PRICE
*159.88
ip • Clip This Valuable Coupon' - p - Clip This Valuable Coupon' -
I FULL SIZE — || CATNAPPER i
l| RECLINER /At*, JII CLOSEOUT MODEL f
|| 3Positons' || i I
I Reg Ret || Reg Ret *799 85 /.TJJTT |
| $399 95 || our s C 3^P r « I
j| OUR CASH PRICE ,| WITH COUPON |
L f??:?? _IL $ ??Pi??rr3r_ J
w- - Clip This Valuable Coupon' - -i p - Clip This Valuable Coupon' -
| 4 DRAWER CHEST || WESTERN BED J
| Pine Finish , A,1% 11 CLOSEOUT |
. and Brass Kc- . ■ ■ Includes headboard & footboard i
• Hardware -YSfijl * ■ Ralls and bedding not Inducted $
I Reg Ret h~—Tl II Reg Ret $499 95 |
I 14995 \ 1 11 Ctoaeout Price |
■ OURCASHPRICE L>-- tm "‘TV Your Choice J
I mu 11 , -rfTTT ou ** n “ '
COUPON - 39.04 J sggoa _l
S Ws art s four store chain not afNlatad with any othar stores >
Storm In: LANCASTER < YORK • CARLISLE, PA • MILFORD. OE
LANCASTER STORE HOURS Mon.-Frt 9-9 • Sot 94 * Sun. Noon-5
{4B Noßcturtt PINAMDNG AVAIAScE
H —3 NcE«chr9W |r« msmm »v e*«li yaw "Wl to**!
mn |KHffi CM*l 4 Carry j > >n«f» mm** int Kwnw 1
3019 Homplond Road a Lancaster a 717-397-6241
using the depreciated value which
may be nearly nothing. If you
haven’t reviewed your coverage
within the last year or two, make
an appointment with your insur
ance agent to do so. Finding out
you have insufficient coverage can
be a costly mistake.
what, but the older crops don’t
look good,” Don says. “However,
the younger crops seem to be do
ing well.”
Don and Steve both feel the big
gest problem with farming today
is cash flow. “You just can’t seem
to get ahead,” Don says. “You
have money coming in but there
are always bills waiting to be
paid.”
The Replogles are concerned
about the future of farming. “We
see a lot of herds going on the auc
tion block,” Don says. “Younger
people can hardly get started at
farming these days because ma
chinery, land, and cattle are all too
expensive. And, there is more
money to be made elsewhere. I
couldn't interest my two younger
sons in the farm. But, some day,
the country will realize that value
of the farmers. We hope it’s not
too late.”
“There's going to continue to
be changes, lots of them,” adds
Steve. “But someone will always
be around to do it”
is
GLIDER ROCKER
Available in
Blue or
Reg Ret.
$549.95
OUR
CASH
PRICE
$ 129.88
5 PC. DINETTE
SET
38"x90“ Cherry Finished Top
w/Hunter Green Bate
and Four Chairs
imr _ ,mr Reg. Ret
/fif/jT 97 " M
5 209.88