Insurance is meant to give homeowners peace of mind, but an increasing number of policy holders are putting themselves at risk by neglecting to insure their home and contents adequately.
There is often confusion over the difference between guaranteed and extended replacement value insurance. Guaranteed replacement means that if the home is destroyed or severely damaged, the insurance company will pay for it to be rebuilt, whatever the cost. This is the most secure form of insurance for the homeowner, as it literally means the home is guaranteed to be replaced, but the deal carries a degree of risk to the insurer. While this type of policy used to be standard, it is now becoming increasingly difficult to even find an offer of a guaranteed replacement policy. It is now more common to be offered an extended replacement value policy, which covers a percentage of the value of the home of up to one hundred percent, plus an added percentage towards building costs. A replacement value policy simply pays an agreed set amount if the property is destroyed or badly damaged.
Consumers should also take into account the depreciation in the value of their contents over time, and insure their replacement value, rather than their resale value. After all, if the items are lost or stolen, they will need to be replaced with new items, not second hand ones.
An important aspect of managing the policy in the long term is to keep it up to date. Some policies will have an inflation effect built in, so the insured amount will automatically rise each time the policy comes up for renewal. A professional valuation should still be done on the property regularly, so that the policy holder can renegotiate with the insurance provider if the level of coverage has fallen behind.
David Cannell is a freelance writer and university educator. He is also the owner of http://www.insurance-andmore.com
As we go through life our needs change. A Young... Read More
Naming a beneficiary for your life insurance policy can be... Read More
By searching online for life insurance, you can get a... Read More
The issue at hand is the use of a consumer's... Read More
Who can you talk to about auto insurance? Insurance agents... Read More
Your latest car insurance bill has arrived and it is... Read More
Business Owners Policies for the Self-EmployedWho needs a business owner's... Read More
You can pay as you talk with a cell phone... Read More
An auto insurance claim adjuster works for the insurance company... Read More
The phrase "BUY TERM AND INVEST THE DIFFERENCE" evolves around... Read More
It has become increasingly difficult to get young driver car... Read More
According to a study by LifeSearch, the number of women... Read More
The average auto insurance policy price is derived from a... Read More
Travel insurance is something that many people haven't considered. Sure,... Read More
Everything is big in Texas and so it is with... Read More
Are you looking to buy a life insurance policy? Well,... Read More
Critical illness can happen to anyone, and often does. If... Read More
My wife and I recently purchased a new home in... Read More
What is the impact of increased flooding risk in the... Read More
In the United States health insurance, unlike many other countries,... Read More
Why Private Medical Insurance Is Becoming So PopularRecent research indicates... Read More
What are the factors involved in flat insurance? Do I... Read More
Health Insurance: a sense of dissatisfactionThe three C's, customization, consumerization... Read More
I have written many articles about the hard surety bond... Read More
You and I. M. Strong, the adjuster from Granite Mountain... Read More
Almost anything can be insured these days: breasts, legs, your... Read More
Life Insurance is a legal contract between you and a... Read More
Consumers are countering rising gasoline prices and other vehicle operating... Read More
If you're a recent college graduate, or in between jobs,... Read More
Here are some useful tips on how to reduce Home... Read More
Family health insurance plans typically need to offer more coverage... Read More
As a property owner it is essential to protect yourself... Read More
The Health Savings Account (HSA) is an amazing tool that... Read More
When you are looking for an automobile insurance quote, the... Read More
In the United States health insurance, unlike many other countries,... Read More
It is now possible to thoroughly research and buy health... Read More
You can pay as you talk with a cell phone... Read More
Accidents almost always make your insurance rates increase. Whether or... Read More
Many people ask, "If I am supposed to get a... Read More
Most of you have heard about "consumer directed health plans".... Read More
When you start a small business you will need to... Read More
Everyone is searching for a way of cutting costs, a... Read More
Americans shopping for their own healthcare insurance can substantially cut... Read More
The Terrorism Insurance Act of Nov. 26, 2002. This helps... Read More
Life Insurance is an insurance policy that provides an agreed... Read More
As many of us expect, the New Year will bring... Read More
As we go through life our needs change. A Young... Read More
The(ACV)Actual Cash Value Policy DOES NOT insure the property itself... Read More
Human life is precarious and so are the activities they... Read More
It's very easy to find California truck insurance on the... Read More
Your friendly, neighborhood life insurance agent is most likely to... Read More
Group term life insurance is more affordable than individual life... Read More
Health insurance providers are going online to find new customers.... Read More
Several key changes are necessary to get control of the... Read More
Don't skimp on insurance. This probably doesn't sound like a... Read More
Life insurance protects you and your family from economic hardship... Read More
A person needs to reexamine their life insurance needs every... Read More
Term life insurance quotes are rarely a concern of single... Read More
Love. Yes, that's right. Love for your spouse, children, family,... Read More
The Health Savings Account (HSA) is an amazing tool that... Read More
So, you've decided to purchase life insurance. Well then, you... Read More
Since 2001, large health and dental insurance companies such as... Read More
Health insurance is something that everyone needs today. The rising... Read More
As you shop online for the best auto insurance deals... Read More
This "How To" article is crucial, up-to-date information concerning what... Read More
Renters insurance is often overlooked by people who are renting... Read More
Insurance |