Home owner's insurance question

@mrdron If by "capped" you mean your overall policy limit, that doesn't sound right. You get to choose the policy limit because you know what you own and you are paying the premium. If your insurer won't increase your limits at your request move on. Kudos on having Renters Insurance, many renters don't bother getting it.

@philharmonicpete    Yes, it is legal jargon saying you have 180 days after the ACV payment to collect the rest up to the actual amount spent to replace the item. In some situations, insurers will grant an extension if  requested. 

@ricmci  There is no limit on audio equipment other than the policy limit. However, there may be a dollar limit on "Media". You will have to check your policy under the heading "Limits on Certain Property" or "Property We Do Not Cover" or contact your insurance company.

Finally, Insurance companies are highly regulated by the individual states and coverage/limitations, etc. can vary from state to state.    

Elizabeth is spot on with the under-insured issue. Also the insurance companies like to be aware of any MATERIAL" issue that exists - and £100k of hi fi stuff is indeed material.  A wise assessor can decimate your claim if they feel inclined. I declare my values (over £100k) and list them as far as I can (apart from the fact the list changes regularly)

This all sounds like a potential nightmare.  Let me set up a possible scenario.  You have a home owners's policy with a $200,000 limit of liability with replacement coverage for personal property.  Your home has a fire and you have a total loss of your $150,000 stereo system.  You make a claim with your insurance company for that $150,000.  You do not have any money to re-buy your system.  What are you going to get paid by the insurance company?  Are they going to replace your system even though you have no money to do that yourself?

Elizabeth is correct in all aspects with one respectful correction. And by the Elizabeth you could teach me volumes on AV...

Contents Coverage B or personal property,  
does not have a “co-insurance penalty” clause as does Building coverage A does. While you are required depending on the carrier to carry 80-100% of replacement cost on your home, your contents has no % that is required. You could have $50k contents but only carry $25k contents and still get full recovery on a $25k loss. The exception is the federal government with National flood insurance, carry 100% across the board or FEMA might get you!
Dave 
38 year SF agency owner