October 7, 2016: Almost everyone has insurance, but do you have the right insurance? I have looked at A LOT of insurance policies throughout my career and I can’t tell you how many people are missing some essential coverages. The absence of these coverages on people’s policies could end up costing them thousands in the event of a loss. Everyone’s insurance needs are different, but the three coverages explained below are some of the most common ones I see missing from people’s policies and are all coverages I recommend everyone has
Guaranteed Replacement Coverage means that the company guarantees that your home will be rebuilt with the same like, kind and quality of your home prior to the loss. There are no gaps in this coverage. Many companies will put a 20-25% cap on the total amount that they will pay out in the event of a total loss which means that the insured ends up lots of money out of pocket, especially if the agent did not keep up with the building costs.
All Risk Coverage insures you for almost all types of losses. The policy states that they will pay for all losses except for things like acts of war, wear and tear, damage caused by your own pets, damage caused by rodents and if you intentionally damage something. This broadens your coverage to include things like power surges and accidental losses. Many companies only cover you for 16 basic losses… fire, theft, wind, smoke, hail, lightning… etc. Many losses actually fall under the “all-risk” category.
Water/Sewer Backup is the #1 most frequently claimed loss each year on the home side. The average loss to an unfinished basement is $10,000. This will cover you if the sewer, sump pump or drains backup. Most companies do not automatically include this coverage. This must be requested by the agent.
Unsure if your policy has these coverages? Want to add these coverages if you don’t? Please feel free to contact me directly and I will gladly review your policy to make sure your property is properly protected in the event of any kind of loss.