According to the Insurance Information Institute (I.I.I.), 2011 will be a record setting year for federal disaster declarations. So far there have been nearly 90 disaster declarations, so we should end the year with over 3 times the average of 34 per year. Hurricane season always makes me think about reviewing my homeowner's insurance policy, too many people realize they do not have enough insurance only after something happens. So this week Rich and Steve had Andrew Lefebvre from the Nationwide Lefebvre Insurance Agency. Confusion and misinformation is the chief cause for homeowner's insurance woes, so it is important to know exactly is and isn't covered in your policy. Guaranteed Replacement Coverage covers the cost of home replacement over the limit agreed to by the insurer, Replacement Cost will cover your home but only up to the amount the insurer agreed to pay. Actual Cash Value Coverage pays fair market value for your home, usually much lower than the cost to rebuild. And then there are variations within the policies, so the only way to really know what you are covered for is to read it cover to cover. Make sure you have separately indemnified expensive items like fine art and antiques, and review your policy yearly to make sure you have taken any upgrades you may have done to your house into consideration. Finally it is a good idea to add a million dollar "umbrella policy" , especially if you have teenage drivers, to cover anything not in your homeowner's policy, these usually cost about $200/ year, and could save you from losing everything if you get sued. This Week's Real Estate Insight: When it comes to insuring your most valuable asset, you want to make sure you have the best possible coverage for the money, not necessarily the cheapest premiums.Beware of Inadequate Homeowner's Insurance
- By Michael McCann
- Posted
According to the Insurance Information Institute (I.I.I.), 2011 will be a record setting year for federal disaster declarations. So far there have been nearly 90 disaster declarations, so we should end the year with over 3 times the average of 34 per year. Hurricane season always makes me think about reviewing my homeowner's insurance policy, too many people realize they do not have enough insurance only after something happens. So this week Rich and Steve had Andrew Lefebvre from the Nationwide Lefebvre Insurance Agency. Confusion and misinformation is the chief cause for homeowner's insurance woes, so it is important to know exactly is and isn't covered in your policy. Guaranteed Replacement Coverage covers the cost of home replacement over the limit agreed to by the insurer, Replacement Cost will cover your home but only up to the amount the insurer agreed to pay. Actual Cash Value Coverage pays fair market value for your home, usually much lower than the cost to rebuild. And then there are variations within the policies, so the only way to really know what you are covered for is to read it cover to cover. Make sure you have separately indemnified expensive items like fine art and antiques, and review your policy yearly to make sure you have taken any upgrades you may have done to your house into consideration. Finally it is a good idea to add a million dollar "umbrella policy" , especially if you have teenage drivers, to cover anything not in your homeowner's policy, these usually cost about $200/ year, and could save you from losing everything if you get sued. This Week's Real Estate Insight: When it comes to insuring your most valuable asset, you want to make sure you have the best possible coverage for the money, not necessarily the cheapest premiums.
