According to a survey by Marshal & Swift/Boeckh, a company specializing in estimating home construction costs, two out of every three homes nationwide are under-insured. Fire damage, theft, an injury on your property or any other accident can be devastating and stressful, especially if you do not have adequate insurance coverage.
Make sure you have adequate insurance protection by meeting with your agent for a periodic Insurance and Financial Review.
When Should I Perform A Review?
An Insurance and Financial Review will help eliminate gaps in coverage and provide a better understanding of your insurance needs and the coverage to best protect you and your family.
Many believe performing a review is only necessary after major life changes, such as purchasing a new home or having a child. While these life changes are cause to review your insurance coverage, it is also important to keep little changes in mind. For example, buying a new car, changing jobs or making improvements to your home are changes that can make a difference in your insurance coverage needs. No matter how big or small your life changes, review your insurance coverages to make sure your have the best protection for you and your family.
Can you Replace Your Home at Today’s Prices?
Replacement cost coverage may be available on your homeowners policy to help protect you from economic fluctuations and depreciation if you have a claim. Replacement cost coverage comes in three different options: standard, extended and additional.
When you have standard replacement cost coverage, if damaged items cannot be repaired then your policy pays the amount needed, up to the policy limit, to replace the items with identical or similar items without a deduction for depreciation.
Extended replacement cost coverage provides the same coverage, but will pay the amount needed, up to a fixed percentage above the policy limit. The percentage is usually 120 or 125 percent.
Additional replacement cost coverage provides the same coverage, but will pay the amount needed regardless of the policy limit.
Annual reviews also allow you to examine rebuilding costs for your home and replacement costs for your belongings. Fluctuations in the economy and depreciation of household items often make it hard to determine the exact cost to rebuild your home and replace its contents.
Being underinsured may result in a claim payment less than the amount of the damaged item. Annual reviews and purchasing the appropriate replacement cost coverage are ways to ensure you won’t be unpleasantly surprised if you have a claim.
Performing annual reviews will give you peace of mind by providing a better understanding of your insurance coverages so you know what to expect if you have a claim
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