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
It is a fact that more and more people everyday... Read More
Because of the many problems that can occur when you... Read More
Disability income insurance can cover you in the event of... Read More
If you're planning an overseas trip, you need travel health... Read More
Drivers are applying for auto insurance online not just for... Read More
Auto Insurance rates are a complicated business. Have you ever... Read More
There are DOZENS of insurance claim possibilities which will increase... Read More
One of the greatest pleasures that a man can have... Read More
Is your auto insurance bill $12000 a year or even... Read More
Only 61% of adult Americans have life insurance (down from... Read More
This "How To" article is crucial, up-to-date information concerning what... Read More
The expenses involved with owning a home can be overwhelming... Read More
You and I. M. Strong, the adjuster from Granite Mountain... Read More
Home Insurance is designed to provide you with financial protection... Read More
Don't skimp on insurance. This probably doesn't sound like a... Read More
Our money saving auto insurance tips were written for one... Read More
For once finances seem to be going in favour of... Read More
Life insurance, whether you need term or whole life, can... Read More
Unlike motor cover, home insurance is not a legal requirement... Read More
The Health Savings Account (HSA) is an amazing tool that... Read More
The original purpose of life insurance was to provide for... Read More
If you run into a billing problem or misunderstanding with... Read More
Did you realize that it could cost you more than... Read More
Although premiums, policies and prices vary widely, the mandate does... Read More
The life insurance quote business online is booming. Not only... Read More
A Bed and Breakfast, often referred to as a B&B,... Read More
Auto insurance rates will vary depending on the insurance agency,... Read More
The changing healthcare and health insurance landscape in the United... Read More
As more and more individuals working at home with or... Read More
If you want to save money on your car insurance,... Read More
Insurance is meant to give homeowners peace of mind, but... Read More
One of the most important things you will ever do... Read More
Disability insurance covers you for an extended period of time.... Read More
As you shop online for the best auto insurance deals... Read More
Finding insurance quotes for California auto is now pretty easy.... Read More
If you're a recent college graduate, or in between jobs,... Read More
There are times when you'll find yourself temporarily without health... Read More
When we talk about insurance the thing you have to... Read More
Risk is an area often overlooked by landlords, but failing... Read More
A little over sixty percent of the folks who reach... Read More
Do you like to spend all day being sitting around?... Read More
You are ready to buy your first car. Researching the... Read More
Car insurance rates are prohibitive nowadays. Many families really struggle... Read More
Shopping for car insurance can be a big undertaking. It... Read More
The online life insurance companies offer a free service where... Read More
A Bed and Breakfast, often referred to as a B&B,... Read More
If you think you don't have any need for auto... Read More
Personalisation, Digitalisation, Mobilisation, these 3 words represent your life today.... Read More
You will find that your lender will insist that you... Read More
As more and more individuals working at home with or... Read More
Whether you are looking for car insurance in Canada, the... Read More
The three C's, customization, consumerization and customer-satisfaction, seem to be... Read More
A Health Savings Account (HSA) is not a type of... Read More
What exactly is Term Life Insurance?Term life is a form... Read More
A "Life Settlement" is a lump sum settlement paid to... Read More
Online comparison shopping is a convenient way to get cheap... Read More
Insurance is meant to give homeowners peace of mind, but... Read More
To get the cheapest possible quote for your car insurance,... Read More
Many factors affect the premium you will pay for auto... Read More
If you and your family relocate overseas, one of your... Read More
Life insurance is something we often take out to protect... Read More
Do you love someone deeply enough to spend your hard... Read More
When you want to purchase a life insurance policy, you... Read More
Risk ManagementAlternate Risk Transfer is a fancy way of saying... Read More
As you probably know all to well, the cost of... Read More
A question you might ask yourself is: why must we... Read More
Insurance |