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Health & Fitness

Important Coverages on Homeowners Policy

Not all Homeowner's policies are the same. These endorsements are often overlooked when buying homeowners coverage.

Important Coverages on Homeowners Policy

 

With recent fires in the area now’s a good time to take a closer look at your homeowner’s policy.  There are several key coverages.  Make sure you know which coverages are on your policy.

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Guaranteed Replacement Cost –This means exactly what it sounds like.  You will be able to get your home back to the same condition it was in before the covered disaster regardless of what it may cost.  Even if the amount to rebuild runs over your policy limits.

Extended Replacement Cost – This policy will generally get you 20 to 25 percent more than the standard limit on your policy.  For example, if your policy limit is $200,000 you could get an additional $40,000 or $45,000 of coverage for a total of $240,000 to $245,000.  But that’s it regardless of the cost to return your home to its original state

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Actual Cash Value(ACV) – This policy is replacement cost minus depreciation.  For example, you bought a $1000 TV 3 year ago and it recently got stolen.   This policy would pay you $800 based a depreciated value of $200. 

Of the 3 options, Guaranteed Replacement Cost offers the highest level of coverage.

Ordinance and Law Coverage

Something else you might want to consider is Ordinance and Law Coverage.  This coverage is often neglected when buying homeowners coverage.  Your homeowners’ policy covers the cost to replace the home to its original standards.  However, building codes or ordinances changes over time and may not be the same as when you first built your house.  For example, think of the recent changes due to concerns over hurricanes.  A basic homeowners policy excludes Ordinance and Law Coverage.  This endorsement can be added to your policy and it provides the following:

      The Cost to tear down the undamaged portion of the house (so the entire house can be rebuilt to code) and

      The cost to rebuild the entire house to current code (the damaged and undamaged parts). 

Not all homeowner’s policies are equal.  These endorsements are very important and sometimes overlooked when shopping for homeowners insurance.  Remember the old saying “You get what you pay for.”  

For more information on how these coverages can protect your home insurance in CT,. Please do not hesitate to contact me at 860-848-2201 ext 319 for an in depth discussion.

 

 

Click here for Home & Auto Quotes emailed  to your inbox www.jcquote.com

Justin M. Cook

President, Curtin Insurance Agency, Inc

Bouvier Insurance - Curtin 

80 Norwich New London Tpke

Uncasville, CT 06382

Local: 860-848-2201 x319

Fax: 1-860-561-8778

jcook@binsurance.com

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