Our homes are very important to us in many ways, from the shelter and safety they provide, the large amount of money they cost us, to the memories that are made there. With this in mind, why risk your home or finances by having an insurance policy that leaves too much to chance? I will hit upon some of the major problems I see with some policies that people bring in to my office. These are just some of the basics, we can do a policy review with you to get much more in depth.
Many people have policies that cover their home and or contents on an actual cost value (ACV) basis. This means that in the event of a claim, you will be paid based on the cost of the item minus depreciation for age or wear and tear of the item, minus the deductible. That can easily make a difference of hundreds of thousands of dollars. The better option is replacement cost coverage (RC) which means that a claim would be paid based on the cost of replacing the item minus the deductible.
If you have any high value jewelry items, I recommend scheduling those on the policy when possible. This will get you better coverage on those items, often including losing them, typically with no deductible. If those items are not scheduled, then typically there are limits to the coverage and you would have to meet the deductible to have any coverage at all.
This is very important to have coverage for water damage due plumbing or roof leaks, those type of claims can easily run in the thousands of dollars. The cleanup and restoration as well as replacement or cleaning of carpets, and furnishings can get expensive.
Foundation / Slab coverage:
This is another area of homeowners coverage that is often overlooked. Your homeowners policy can provide coverage to repair the foundation due to plumbing leaks.
These are a few of the issues we see, feel free to bring in your policy for a review.