Home Security
- 1. Types of Alarms
- 2. Windows & Doors
- 3. Gates & Fences
- 4. Security Lighting
- 5. Lawn Security
- 6. Protecting Your Assets
Self-Protection Products
- Asheville Home Security
- Ames Home Security
- Elyria Home Security
- Dickinson Home Security
- Florissant Home Security
- Chatham Home Security
- Detroit Home Security
- North Shore Home Security
- Black Jack Home Security
- Mableton Home Security
Homeowner’s Insurance Claims – Are You Covered?
Homeowner’s insurance can seem like a confusing web of information and numbers. Words like deductible, liability, and insurance claims, and acronyms like ACV (actual claims value) make understanding a basic insurance policy feel like a lesson in foreign languages. And knowing how much coverage to purchase can feel like a risky guessing game. In truth, there are tools available and knowledgeable insurance agents willing to streamline the insurance coverage process and give you the certainty to choose the policy that works for you.
The first step is understanding the four basic types of homeowner’s insurance policies and deciding which one you prefer.
- Cash value policies provide payment to replace your home and possessions minus any depreciation up to the policy limit amount.
- Replacement cost policies pay the actual cost of rebuilding/repairing your home, along with the cost to replace your possessions up to the policy limit.
- Guaranteed replacement cost policies pay whatever it costs to rebuild your home as it was before the disaster, even if it exceeds the policy limit.
- Extended replacement cost policies pay a specified percentage over the policy limit to rebuild your home. Usual percentages range from 20 percent to 25 percent.
Maybe you are looking to purchase your first homeowner’s policy or perhaps you already have a policy, but are wondering if you need to make some adjustments. Well, before something happens and you have insurance claims to file, you should see if policy adjustments are in fact necessary. It is recommended that homeowners re-evaluate their coverage yearly to take inflation, depreciation, and asset accumulation into consideration. If inflation is a big concern for you, ask your insurance agent if he or she has inflation guard, an add-on to your policy that automatically adjusts the policy’s claim limits.
The biggest concern for homeowners looking into insurance is making certain they have adequate coverage. Unfortunately, many novice buyers simply accept the minimum premium only to have insurance claims rejected or partially paid because of a lack of coverage. People file insurance claims during times of duress, so that is not the time to discover your coverage is less than adequate. Here is an easy equation to help you determine the premium you need to cover the rebuilding of your home:
Local building costs per square foot x Total square footage of home = Cost to rebuild home
Next on the list of concerns for homeowners is the cost of their insurance policy. Policy prices vary from state to state and company to company, but local averages can still give you an idea of what to expect. Traditionally, Texas is the most expensive state, with $1,409 being the cost of an average premium. Idaho ranks the best place to purchase home insurance, with an average premium of only $500. Naturally, you can expect your costs to fall within that range, depending on the size of your home, assets, and any additional coverage you require.
No one wants to have to file insurance claims, but don’t you want continuous confidence that your claim will be paid in full? Taking the time to understand your insurance policy and re-visiting it regularly will not only make the insurance claims process go smoothly, but it will also leave you knowing that your home and family are well protected.
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