Home and Property Insurance

Sara

Sourced From: https://www.nerdwallet.com/blog/insurance/top-home-insurance-claims-travelers/

Not any insurance cover is as safe as it may be presumed that insurance is where safety emanates. It is advisable to be more careful when dealing with any insurer or on any insurance cover you are taking and what pertains. Taking caution on suspicious policies and possible pitfalls can savor you unnecessary costs or loses.

Check to see if your policy covers repairs at actual cash value (ACV) or at replacement cost. Replacement cost is usually much better. Case in point: If your roof was damaged and needs to be completely replaced, replacement cost will pay for it to be fully repaired less your deductible, while ACV will pay you what your roof was estimated to actually be worth at the time of the damage. The tradeoff is that ACV costs less than replacement cost coverage.

Finally, some property owners only want to insure a property for what they paid for it, which may bring into play a co-insurance clause. This is (depending on local laws) where the property is insured for less than say 80% of its current replacement cost. A lesser amount of coverage and the insurance company will require you to share in a percentage of the repairs above and beyond the deductible amount.

One last warning: some insurance companies provide seemingly unbelievable rates for their policies. If the company is unknown and its rates are exceptionally good, this should be a red flag for you. Check around for the company's reputation, and don't just take the salesman's word for it. Have a look at the policy and see what they cover, and what they don't. You may find only too late that what you thought was adequate coverage, was barely the legal minimum in your area. Seek quality coverage - remember, "cheap insurance can be very expensive."

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