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We give you some great need to know tips so you can get more out of your home insurance policy.
1. Replacement-Cost Coverage vs. Actual Cash-Value Coverage Check your house insurance policy whether you are covered for ‘replacement-cost ‘or ‘actual cash-value’. Replacement-cost coverage is less popular than the latter because it pays to replace the damaged items with material or items of “like kind and quality” at current prices. So if your 2010 Apple iPod goes for a swim in the washing machine, your insurance company will replace it with the latest Apple iPod available. In contrast to this, actual cash-value options will replace your lost or damaged items at the item’s depreciation value. Replacement-cost coverage options would normally cost a bit more and some companies don’t offer this option anymore.
2. Claiming Your Appraised Value of Your Loss Be aware that when your appraisal value for your property was made, that is the value that will be used when you claim. Sometimes insurance companies refuse to cover house insurance claims if the property has decreased in value since your previous appraisal due to depreciation or poor maintenance. If your insurance company is filing your claim for damages to your belongings or house, you will get the actual-cash coverage based on the value at the time of the loss.
3. Be Aware of Value Limits on Belongings Some insurers won’t pay-out for the full replacement of your claim because they often have a limit on the value of certain items. If they do replace your lost or damaged belonging, they base it on the average person’s losses. You can speak to your insurance company about increasing these limits to accommodate your specific needs.
4. Renewing or Losing Your Policy Your insurance company may cancel your insurance policy or deny a renewal if your property’s value doesn’t meet your insurance company’s underwriting standards. Alternatively, you may not be offered a renewal of your contract if you have filed more claims than the average person. The average person makes one to two claims every ten years. Your insurance company will notify you thirty days before the end of your policy’s duration with either an offer of renewal or ‘non-renewal’. If you insurance company cancels your policy, it may be due to unpaid premiums. Your insurance company will always notify you ten days in advance if they are cancelling your policy. They may use a late billing notice to inform you that your policy has been cancelled or is pending cancellation.
©Diane Moalem for Compare Guru
