Understanding Your Policy

It’s important to understand the basics of your insurance policy in order to effectively deal with your insurance agent. Here are some of the most common questions about a typical insurance policy.

Will I Have Enough to Rebuild?

When a disaster wipes out your home or business property, you need to ensure that your policy will pay out enough for you to rebuild. To determine this you’ll need to assign a value to your home. Don’t rely on what you paid for it, but instead, keep these things in mind:

• What are the construction costs in your area? Do you live in area that is booming? Then you’ll have to figure in the current costs when figuring what it will cost to rebuild.
• Have you made any renovations to your home? If so, be sure to include those improvements in your calculations.
• Don’t forget to add in your current features such as that Jacuzzi tub in the master bathroom or the wrap-around deck. Remember, you’ll want the exact same house that you had before the disaster.

What About My Stuff?

When a home is a total loss, that usually means that all of the personal property inside will need to be replaced as well. That includes appliances, electronics, clothes, furniture, jewelry and everything else that makes up a person’s life. You insurance company will calculate these items one of two ways: at the replacement cost or the fair market value. When you have replacement cost insurance, the insurer will pay you what it will cost to replace the item at today’s market value. But if you’re only insured for fair market value, you’ll only get what your old item would be worth today. Be sure to specify because many insurance agents will automatically include fair market price unless you ask for replacement cost.

How Much Deductible Will I Have to Pay?

You decide on your deductable when you purchase your insurance policy, and the higher the deductable is, the lower your annual premium will be. Be sure to set a deductable that you can afford.

What if Someone is Hurt at My Home?

Liability insurance will cover the expenses of someone who gets hurt at your home. This includes friends, neighbors and even contractors who are doing work on your home.

What if I Have to Move Out During the Repairs?

If you have loss of use coverage, that won’t be a problem. This type of coverage will pay for your out of pocket expenses such as hotels, apartments, transportation and food in the event that your home is deemed uninhabitable while it’s being rebuilt or repaired.

The experts at Second Opinion Claims Services can evaluate your policy and tell you what is and isn’t covered. We have worked with thousands of people to help them through the process of filing a claim when trying circumstances arise. Call us now and let us determine the particulars of your policy.