-
A: Replacement-cost coverage pays to replace your home
and belongings with materials of "like kind and quality" at current prices. Actual
cash-value policies reimburse the depreciated value. A replacement-cost policy will usually
cost a little more. Some companies no longer offer replacement cost coverage.
-
A: Flood damage is not covered by most homeowner policies.
A separate policy can be purchased through the National Flood Insurance Program. For more
information, visit
NFIP's website or call NFIP, (888) 379-9531.
-
A: Your company must send you notice at least 10 days
in advance of your policy being canceled because you haven't paid your premium.
The required notice may be in the form of a late billing notice.
If your policy has been "non-renewed" (the company is not continuing to cover you
for a reason other than non-payment), the company must give you at least 30 days' notice
that your coverage is ending.
-
A: Most
homeowner policies have "dollar limits"
on certain types of belongings. Generally, these
limits are on silverware, guns, jewelry, watches,
furs, and computers. The limits usually cover
losses of the average person. Talk to your agent
or insurance company about increasing these limits
to meet your individual needs.
-
A: If an
agent tells you one price, but your bill is for
a higher premium, it could be that a simple mistake
was made in processing your application. Check
to see if the amounts of insurance, deductible,
scheduled items, and policy endorsements are
the same on the policy and the quote. If you
can't find a discrepancy, check with your agent
or company to find out if the bill is correct.
If the bill is higher than you expected, ask
for an explanation. You will probably find there
is an honest misunderstanding between you and
your agent. These misunderstandings or "misquotes"
can happen when the agent does not have accurate
information about your property or about what
kind of coverage you want.
-
A: Generally,
insurance policies exclude damage caused by seepage,
dry rot, or vermin (animal pests). This is because
these problems are usually the result of poor
maintenance, not a "sudden and accidental"
event.
Insurance companies
may cancel your policy if your property has deteriorated
to a point that it no longer meets the company's
underwriting standards. Insurance companies may
also choose not to renew your policy if you have
filed more claims than the average person. The
average homeowner files a claim once every nine
years.
-
A: The
appraised value of your property is the value
when the appraisal was made. Your property may
have lost value since your last appraisal as
a result of poor maintenance or depreciation.
If your house
or belongings are damaged, your insurance company
must pay your property's actual cash value at
the time of the loss or its replacement value
if your policy provides replacement cost coverage.
-
A: While
homeowners insurance is not designed to cover
most business uses of your home, some policies
might cover some business uses, at lest partially.
For example, if you use your home computer or
laptop for business, it's often covered. However,
you should check your policy limits to make sure.
Your laptop might be covered, even it is lost,
damaged or stolen away from your home.
Most homeowner
policies provide a limited amount of liability
coverage if you care for a friend's children
and are not paid. If you are paid to provide
daycare in your home, you must buy more insurance
to cover your related liability.
My home was damaged. What is the difference between
the "replacement cost" and the "actual cash value?"
My home was damaged. What is the difference between
the "replacement cost" and the "actual cash value?"
