Actual Cash Value
Limit of Liability
Loss of Use
Net Cash Value
If you’re a homeowner, do you have the right type of insurance to insure your asset? We really never know. What type of homeowners insurance policy do you need? Most of us don’t know much about insurance and we depend on our insurance agents to tell us really what’s best for us, but it is important for us to understand what questions we need to ask and how to go about choosing what is the right policy. If you are like most of us and haven’t quite mastered insurance, here are some things to ask your agent.
How To Decide On a Policy
Often, we might decide that we want the policy that gives us the lowest deductible or has the lowest monthly payment. Most of us understand if we have a higher deductible our monthly payment will be less. However, if that is all that we focus on, we may not be getting the best policy to cover our needs. If you really read the fine print, you will find out more about what you will get if you need to file a claim. Some policies don’t cover full replacement value of your home, so you can get a cheaper month-to-month policy. Cheaper might mean that if you have a total loss of your home, the insurance will not pay out enough to replace your home. An example would be if you have a fire and your house burns to the ground, which is a terrible thought, but if that happened and you don’t have the coverage that allows for full replacement value of your house, you may not be able to rebuild it.
Questions to Ask Insurance Agents
The first thing that you need to ask your insurance agent when you are purchasing insurance is, what’s the replacement value of this policy? Is the coverage replacement value going to replace my house, if it gets hit by a tornado or there is a fire? What’s it actually going to replace? Find out whether your contents are covered, what’s covered inside your house by the insurance policy? If you do have a fire, is the insurance policy going to replace those items for you?
These are critical questions that you really need to talk to your insurance provider about so that you get the type of homeowners insurance policy you need. It is a bad idea to just go by cost of the policy and/or the deductibles. So, learn to ask more questions, and maybe do a little research online before you go into talk to an insurance agent about a homeowner’s policy and make sure you have a good list of questions.
In 2016 we had a fire in the basement of our home. We were very lucky and had good coverage sort of by accident. We really didn’t know anything about insurance, only knew we had to have it. The insurance paid to have the house repaired from fire, smoke, and water (from the firefighters) damage. We were able to claim depreciated value of the contents that were damaged. We lost some sentimental items that couldn’t be replaced. Again, we were very lucky.
If you find yourself with a damaged house and not enough insurance, what options do you have? One option is to call Mastiff Home Buyers to help. We know what you going through and can help you find some options. If you want sell fast as-is, we can make you a cash offer for your house so that you can move on and put this terrible event behind you. Call Angel today at 816-535-0076 or connect with us online.