Insurance Protection
Many do not recover the full value of their property because:
- They are underinsured.
- There are gaps in their coverage due to exclusions, coverage limitations and deductibles.
- They do not have records to help their insurance companies settle their claim quickly and fairly.
Need for an Insurance Review
Insurance companies recommend a review – at least annually – of your risk management needs.
- Prevent surprises by catching things before something happens.
- Make sure you have the most cost effective protection – the right coverage at the best prices.
- Minimize coverage gaps caused by deductibles, exclusions, internal policy limits.
- Eliminate duplication and unnecessary coverage.
How much is your house worth?
- Don’t make the mistake of undervaluing or overvaluing your home! For insurance purposes, you need replacement cost coverage! If you have less than the replacement cost, you will recover only a portion of the amount of damages, not the true cost to restore the property.
- Market Value – the price a buyer would likely pay for your home, if you were to sell it today.
- Assessed Value – what your home is valued at for property tax purposes.
- Replacement Cost – the cost to repair or replace lost or damaged property. Insuring your home to this amount is a must!
Other Coverages:
- Contents – Your homeowners’ policy also covers the contents of your home, such as furnishings, fixtures, flooring, cabinetry, clothing, food and typical household items. Contents are typically covered at 50% of the insured value of the dwelling, although many policies offer higher limits.
- Outside Structures – Outdoor property such as detached garages, sheds, fences are usually insured for 10% of the dwelling amount.
- Additional Living Expense – The costs you incur for temporary living arrangements, such as hotels and food while your home is being repaired.
Exclusions and Limitations:
- Be aware of common exclusions and limitations. For example, you may need to purchase separate or additional insurance for some of these. Check your policy or ask your agent.
- Flood
- Acts of God
- Jewelry
- Antiques and Memorabilia
- Art Collections
- Stamp and Coin Collections
You can be sued!
The personal liability portion of the policy is one of the most important risk management features of your policy. If someone is injured while on your property, you could be liable for their medical and other expenses.
Your automobile insurance policy also contains liability protection. If you or a family member is found to be responsible in an accident, your policy needs to cover bodily injury and any damage to property and vehicles. With the rising costs of medical care, it’s important to have adequate liability limits.
If you own a home and other assets, you should consider a personal umbrella liability policy to cover any amounts in excess of the limits of the underlying home or auto policy. Otherwise, the things you have worked so hard for could be at risk.
