Very simply put: if your couch is burned during a bbq by a careless cigarette, do you want the depreciated value(ie – garage sale value) or the COST TO REPLACE IT? Clearly the latter unless you think saving $69 a year is a good bet vs. the garage sale value of all of your personal belongings. Now, when I say personal belongings, think of everything that is not permanently attached to the wall. You paid $1000 for that television last year, and if you put it on craigslist today, you’d be lucky to get half. Don’t make that mistake with your home insurance!!!