TAG | replacement cost
Author: Gavin Bloombr
Source: articleage.combr
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Homeowner insurance premiums are on the rise. There was a time when the home policy was the best and least expensive of all the property and casualty insurances. The homeowner policy is under attack. There are many more exposures than ever before. Toxic mold has caused some real problems in some areas of the country and caused the premiums to rise dramatically. Some states exclude coverage for toxic mold entirely. Natural disasters have had an affect on rates. The recent barrage of hurricanes has caused supply shortages and these shortages increase the demand and the price for repairs. These expenses are passed on to the policyholders eventually.
The rates are calculated by insurance company fiduciaries. They look at the cost of claims and the cost of doing business and compare it to the company revenue to come up with your rate. You have no control over how the companies derive their rates. They have to get approval from their state insurance departments before setting rates or increases. They cannot arbitrarily come up with a figure.
What Can You Do?
1. Understand Your Policy – Make sure that you know what kind of policy that you have right now. If you are making your first purchase then you need to research the kind of policy that you want. Replacement cost or Actual Cash value are your two major choices. Replacement Cost policies replace your structure or contents with material of like kind or quality with no depreciation. The actual cash value policy settles your loss by taking the replacement cost and subtracting depreciation because of age or use.
2. Self Insure – The best way to purchase insurance is to self-insure by using the highest deductible that you can afford. Homeowner policies have a much lower frequency of claims as compared to auto insurance. Low deductibles no longer justify the higher premium.
Use your declarations page when you comparison shop and make sure that you receive all the discounts. Multi-policy, protective device discounts, and retirement discounts are available on almost all homeowner policies. Check our recommended insurers for rates.
View our Recommended Insurance Company This site is simple and easy to fill out a quote and has a lot of great info about Home Insurance and Affordable Health Insurancebr
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Author: Robert G. Lawrencebr
Source: downloadbr
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What is Homeowners Insurance?
Homeowners Insurance provides you with the coverage in case of a disaster. In the event of a disaster your homeowners insurance will provide you with financial protection. A homeowners insurance policy insures the home in which you live along with the possessions you keep in it.
Home Insurance is a Package Policy
Homeowners insurance is purchased in a package policy. A package policy means that it covers both damage to your property and your liability or legal responsibility for any injuries and property damage you or a member of your household cause to other people. Homeowners insurance also covers damage caused by household pets.
A homeowners insurance policy covers most disasters, however there are some exceptions such as floods, earthquakes and poor maintenance (Also known as wear and tear). If you want coverage for floods or earthquakes, you will have to purchase separate policies. However, maintenance related problems are the homeowners responsibility to take care of. In fact, keeping up with the maintenance of your home will help to reduce the likelihood of a loss in the future. A good example of this is the replacement of a roof that is showing signs of wear.
Overall it is very important to have homeowners insurance coverage that suits your specific needs. You never know when a loss is going to occur and you are going to need the money to fix it. Take Hurricane Katrina for example; there were many of people that were without homes because they didnt have flood insurance. That is why it is very important that you get the proper coverage.
Remember that standard homeowners policies do not cover flooding so you will have to purchase that separate through your homeowners insurance agent. Discuss all of the possible exposures with your agent, broker, or insurance company.
Replacement Cost
Replacement cost coverage is available for the structure of your home; This allows you to repair the home to the state that it was before the damage took place. Actual cash value coverage is replacement cost less depreciation. The older your possessions are, the less you will recover from the homeowners insurance company.
Renters Insurance
Not only is insurance coverage available for homeowners it is also available for the people who rent apartments or houses. If you rent a house and you have a renters insurance policy, you will be covered in the event of a loss. The coverage for a renter is relatively inexpensive and will cover your property, your liability, and loss of use of the home due to a covered loss.
Coverage Types
The standard homeowners insurance policy includes four different types of coverage.
1) The coverage for the structure of your home is offered by the homeowners insurance company. This means that they will repair or rebuild your home in the event of a covered loss.
2) The coverage for your personal belongings that you have in your home is also covered by the homeowners insurance company. This means in the event of a claim that is covered by your insurance policy, your personal belongings will be able to be replaced. Note: It is a good idea to carry replacement cost coverage for your contents. This way, your items are not depreciated if there is a loss. With replacement cost coverage, your property can be replaced with items of like kind and quality.
3) Liability protection covers you in case of a law suit against bodily injury or property damage that you are your family members caused to another party.
4) Additional living expenses if you are temporarily unable to live in your home because of an insured disaster.
There can be more to a home insurance policy and there are limitations for certain types of property. It is best to discuss these options with a representative at the time your are applying for coverage.
Robert co-founded Insurance4USA.com, an insurance quote shopping service, in 1999. He has been a licensed insurance agent in New York State since 1990.br
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Author: Brandon Miller -
Source: articleage.com
Home owners insurance policies are designed to protect your house and personal property against losses from the perils listed in your policy.
Home owners insurance rates vary widely based on your geographic location. Areas prone to hurricanes, floods, hail, earthquakes, fires and other natural disasters will generally have higher rates. Even the distance to the nearest fire department or fire hydrant can have an impact on your home owners insurance rates.
Knowing Your Policy Is VERY Important
Coverage for Property and Possessions
Liability Coverage
Theft Off Premises
Additional Living Expenses
What Can a Homeowner Do To Be Prepared?
What Can a Homeowner Do To Save Money?
Coverage for Property and Possessions
Damage to the dwelling and the contents could be the biggest unexpected disaster awaiting a homeowner who has less coverage than needed. Most policies provide a stated maximum amount of coverage for the dwelling and another amount for contents.
Generally, dwelling coverage is based on replacement cost, which means that in the event of a total loss, the policy will provide reimbursement, up to the policy limit, to replace the structure. Ideally, a homeowner should buy enough insurance to completely rebuild the home, known as replacement value. This figure may not be the home’s actual market value or what the owner originally paid for the home. This is especially true in a depressed or an inflated market or if the home is simply not replaceable to its condition prior to the loss. Replacement cost policies, which may pay over the policy limit to rebuild the home, may be available from your insurer.
To determine how much insurance to purchase, an accurate appraisal of the home for replacement cost should be made. Working with your insurance company is important in this process. Most insurers recommend or require that a homeowner insure the dwelling for 100 percent of its full replacement value. Some homes, very unique ones such as national register-types or very elaborate ones, cannot be insured for exact replacement since some features are not replaceable in either workmanship, materials or practical costs. The insurer and/or the agent is the best source for these issues.
Coverage for personal property is different. Most policies provide actual cash value coverage for contents which includes depreciation, or full value contents without depreciation. Actual cash value means that if a power surge blows out a 10-year-old television set, the homeowner should know what to expect. Unlike full value contents coverage, which would essentially provide a new television set, actual cash value coverage allows the insurance company to calculate the useful life of the item and then depreciate the item to present value. A depreciated 10-year-old television set would be insured for only a fraction of its original cost. A homeowner may want to consider replacement cost coverage to be sure that the contents are adequately insured.
In addition to making sure that contents are covered for replacement cost rather than actual cash value, homeowners should purchase additional coverage for items that would ordinarily be subject to loss limitations. Virtually all policies cover contents loss up to the policy limit for items that include furniture, clothing, toys, accessories such as lamps and other items which are used for decor. Explicit limitations are set in the policy for high-cost items such as jewelry, fine art, furs, electronics, collectibles, oriental rugs and antiques. If a thief comes in and steals a two-carat engagement ring, it will not be covered well enough without what is commonly known as a personal property rider to cover specific, costly items. For more information on home owners insurance visit our specialist site below.
Author: Robert Lawrence
Source: articledashboard.com
What is Homeowners Insurance?
Homeowners Insurance provides you with the coverage in case of a disaster. In the event of a disaster your homeowners insurance will provide you with financial protection. A homeowners insurance policy insures the home in which you live along with the possessions you keep in it.
Home Insurance is a Package Policy
Homeowners insurance is purchased in a package policy. A package policy means that it covers both damage to your property and your liability or legal responsibility for any injuries and property damage you or a member of your household cause to other people. Homeowners insurance also covers damage caused by household pets.
A homeowner’s insurance policy covers most disasters, however there are some exceptions such as floods, earthquakes and poor maintenance (Also known as wear and tear). If you want coverage for floods or earthquakes, you will have to purchase separate policies. However, maintenance related problems are the homeowner’s responsibility to take care of. In fact, keeping up with the maintenance of your home will help to reduce the likelihood of a loss in the future. A good example of this is the replacement of a roof that is showing signs of wear.
Overall it is very important to have homeowners insurance coverage that suits your specific needs. You never know when a loss is going to occur and you are going to need the money to fix it. Take Hurricane Katrina for example; there were many of people that were without homes because they didn’t have flood insurance. That is why it is very important that you get the proper coverage.
Remember that standard homeowner’s policies do not cover flooding so you will have to purchase that separate through your homeowner’s insurance agent. Discuss all of the possible exposures with your agent, broker, or insurance company.
Replacement Cost
Replacement cost coverage is available for the structure of your home; This allows you to repair the home to the state that it was before the damage took place. Actual cash value coverage is replacement cost less depreciation. The older your possessions are, the less you will recover from the homeowners insurance company.
Renters Insurance
Not only is insurance coverage available for homeowners it is also available for the people who rent apartments or houses. If you rent a house and you have a renters insurance policy, you will be covered in the event of a loss. The coverage for a renter is relatively inexpensive and will cover your property, your liability, and loss of use of the home due to a covered loss.
Coverage Types
The standard homeowner’s insurance policy includes four different types of coverage.
1) The coverage for the structure of your home is offered by the homeowner’s insurance company. This means that they will repair or rebuild your home in the event of a covered loss.
2) The coverage for your personal belongings that you have in your home is also covered by the homeowner’s insurance company. This means in the event of a claim that is covered by your insurance policy, your personal belongings will be able to be replaced. Note: It is a good idea to carry replacement cost coverage for your contents. This way, your items are not depreciated if there is a loss. With replacement cost coverage, your property can be replaced with items of like kind and quality.
3) Liability protection covers you in case of a law suit against bodily injury or property damage that you are your family members caused to another party.
4) Additional living expenses if you are temporarily unable to live in your home because of an insured disaster.
There can be more to a home insurance policy and there are limitations for certain types of property. It is best to discuss these options with a representative at the time your are applying for coverage.
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Why is My Home Insurance Replacement Cost More Than Its Market Value?
0 Comments | Posted by in Insurance
Author: Carla D Edwards
Source: ezinearticles.com
Many homeowners are perplexed by the gap between the market value of their home and the replacement cost on their homeowner’s insurance policy. With the declining market values, these numbers are becoming farther apart and many people are asking themselves why the big discrepancy. Your homeowner’s insurance is a contract to rebuild your home, not to buy you another one like it down the street.
While the market values seem to continue to decline, reconstruction costs are still on the rise. The cost to rebuild your home is not the same as sales price and lowering your policy limits could be a detrimental mistake. Rebuilding generally costs more than new construction because it involves removal of debris and working around landscaping. These are items that are not considered in new construction. The market value of your home is not a good indicator of the amount of insurance you should purchase.
How is reconstruction cost calculated? Each insurance company may approach this a little differently. However, the basic principle is the same. The cost is calculated from information about your home. The square footage, number of bathrooms, exterior siding, among other factors, is all taken into account when this is calculated. It is important to estimate this as accurately as possible because many companies have a coinsurance clause. This is an insurance policy stipulation that states a property must be insured at a certain percentage (usually 80%) of its value in order to collect the full amount of a claim.
There are ways to save money on your homeowner’s insurance without lowering your coverage amounts. Ask your insurance agent about money saving discounts for protective devices such as deadbolts, sprinkler systems, and security systems. You may also want to consider increasing your deductibles. Insure multiple policies with one insurance provider. Many companies offer discounts for having your home and car insurance with them.
This article was written by Carla Edwards
Edwards Insurance Agency, Inc
7505 Waters Ave Ste D-7
Savannah, GA 31406
http://www.theedwardsagency.com
Author: Richard Berroa
Source: articleage.com
Household accidents are a fact of life. The reason for all you have coverage to protect their assets. Getting coverage is only one step. Know what your policy covers and how? This may seem a silly question, but the fact is that many homeowners who have a very rude awakening as to how much they are insured. The first thing to do if you do not understand their policy after reading that is having your insurance provider to explain it. It's better where you stand now before a disaster. Ask away! Some important questions are: 1. Are your belongings insured for replacement cost (the amount of money it would take to replace an item today), or the actual cash value (replacement cost less depreciation)? This makes a big difference when you are restocking lost at home. 2. Is your house insured for its replacement value? Some people cut corners to save a few dollars and ensure the house for half the replacement cost or a fraction of the replacement value. When the time comes you have enough money to rebuild if a disaster erupts? 3. What liability coverage are provided through the policy of its owner? It makes a difference when visiting his son Mikey little friend gets hurt at home under her roof. Boys Will Be Boys, but that will not help you pay your hospital bills! You know the answer to all questions? If there is no reading and asking these questions the representative of their home insurance. Now that you have covered your bases, you should feel a little safer, you are ready for the day, when you must file that claim. That day is now! What next? The answer to that question depends on what type of claim being submitted. First off any threat of life for you and your family. If there is a fire at his home leave and call the fire department. If it has been stolen call the police! Once the emergency has been directed to call your agent or insurance company immediately. Have your policy number available if possible. The importance of immediately calling is that insurance companies set a time limit for filing claims. Once you've finished asking you questions, ask anything you need to know. Am I covered? Does my claim exceed the deductible? When will I receive my check? How long will the claim process take? Will I have to get estimates for repairs? Remember that the only dumb question is a question, make sure you understand everything. The next steps of the kind common sense, make repairs and / or take steps to protect your property from further damage. Keep all receipts of what you spend, submit to your insurance company for reimbursement. Prepare a list of items lost or damaged. Save any documentation you have, if you have a catalog of home inventory, use this to expedite your claim. Keep receipts for living expenses during this period of time if your home is so damaged that he can not live at home. Provide any additional information necessary to your insurance provider assigned to handle your request. Finally, if you are not satisfied with any part of its settlement offer, talk to your representative. Make it clear to you step by step how they arrived at the figure we are offering.
