Before asking your insurance agents questions there are two key terms you should know “replacement cost” versus “market value.” Replacement cost covers repairing entire home. Market value is how much someone would pay to buy your home and the land around it in its current burnt up condition. Usually your home policy should include homeowner’s fire insurance; however, you need to make sure you ask a few questions about the policy
The first two questions are the basics.You need to know what it covers and what it does not cover.
What It Covers? A typical policy will pay for damage to your property and your possessions in the event of certain storms, fire, theft, or vandalism. Homeowner’s insurance should also covers shelter costs, so you don’t have to face crazy hotel bills to make matters worse.It should also cover things outside your home. For example, if something is stolen from your car, auto insurance will not pay for it —but your fire insurance policy likely will.
What It Does not Cover? A standard policy has some exclusions, including earth movements (landslides, earthquakes, and sinkholes), wars, lightning, government actions, nuclear hazards, power failures, faulty maintenance, and flooding. Insurance companies do no cover windstorms and tornadoes in some states.
Does the policy cover actual cash value or just replacement cost? If your home is damaged, the out-of pocket cost is all you pay to repair it under a replacement cost policy. An actual cash value policy will consider depreciation into the payout claims. This means you might have to pay both the deductible and some extra cash to restore it to it former glory. Often, home repair or replacement is covered at replacement cost while any personal property such as your furniture, appliances, and clothing are replaced at actual cash value. It’s often possible to upgrade your policy in the future to have your personal property insured at replacement value as well.
Insurance policies might sound a little complicated to the uninitiated. Do you need help in choosing the right policy? Call Catstrong LLC on (254) 400-2318 , we are your friendly neighborhood expert available round the clock.
How is jewelry covered in the policy? Many policies place a limit on claims for luxury items such as fine jewelry or art.
Does the policy cover all damages? Standard policy has primary cause and secondary cause. If both causes fire the primary cause is taken. Fire caused due to natural disaster (ex. Lightning) may not be covered.
Am I fully covered if someone is injured in my home and sues for damage?
What is the maximum amount? How much the insurance company will pay in legal bills and damages if you are sued is shown in the liability coverage section of your policy. If a visitor gets a burn in your home, make sure you have enough coverage for potentially expensive medical bills or legal bills.
Check www.catstrongtx.com to gather some information about how you can protect your property and what steps you need to take in the event of a fire. You can also call us on (254) 400-2318 .