Posts Tagged ‘home limit’

Why is my house insurance limit so high?

Wednesday, January 16th, 2019

Some great points courtesy of Acuity Insurance, on a topic we hear about frequently….

Why does it cost more to rebuild after a loss compared to new construction? Shouldn’t the costs be about the same?

The answer is no. Reconstruction almost always costs more than brand-new construction, particularly when there has been a partial loss, and there are several reasons why.

• Repairing a building after a partial loss often means working from the top down, which is a far more time-consuming and labor-intensive process compared to building from the bottom up

• Typically, remnants of the damaged structure need to be removed before reconstruction can begin. Demolition and debris removal are expenses that add up before the first cement can be poured or the first nail hammered in.

• Current building codes are often stricter than those that were in force when the original structure was built, requiring more expensive materials and methods for compliance. In some cases, even undamaged parts of a structure may need to be rewired or re-plumbed to meet current codes.

• In the wake of natural disasters, building material costs rise sharply, and this can add thousands of dollars to the cost. Labor availability may also be more limited, further increasing costs.

• Reconstruction sites can present additional challenges, including difficult access to the worksite and the need to protect undamaged portions of the building.

Of course there are more factors, but these are some excellent points!  Thanks Acuity!

For more information or quotes on your home insurance please call or click.  419-446-2777.

Have a great day!  Beck Insurance Agency, Inc., Archbold, Ohio.

 

How Much Home Insurance is Enough

Tuesday, June 26th, 2018

How Much Home Insurance is Enough

The cost to rebuild your home is its replacement value. This can be very different from the estimated market value or actual purchase price. In most cases, it costs more to rebuild the home you own than to buy a new one.

Ohio, Indiana, Michigan, Tennessee, Georgia How much home insurance is right for you?

Based in Archbold, Ohio, Beck Insurance Agency understands the home insurance needs of our customers. We’ll work with you to estimate the replacement cost for your home and to adjust your policy limits from time to time as needed.

It is critical that you provide us with accurate, updated information about your home and contents. If your dwelling limit accurately reflects your home’s true replacement cost, some companies will pay more than the limit if a covered loss is greater than the limit on your policy.

Once a review of your home and possessions indicates you are properly insured, it’s a good idea to reexamine your coverages and limits from time to time, especially whenever you make additions or improvements. Beck Insurance Agency can help you re-evaluate your insurance needs, just give us a call at 419-446-2777 to speak with one of our agents.

Be Sure You Have Enough Homeowners Insurance
Here are some steps you can take to reduce the danger of being seriously underinsured:

1. Call Beck Insurance Agency.  If you have questions or concerns about the limits in your policy, ask us to show you how those amounts were calculated. This will also give you an opportunity to make us aware of any overlooked information.

2. Read your policy. Certain property, such as jewelry, and certain perils, such as earthquake or flood, is better insured or only available separately. Knowing what is covered and for how much will help you insure properly. If there is anything in your policy you don’t understand, contact Beck Insurance Agency at 419-446-2777 and ask for an explanation.

3. Review. At each annual renewal of your policy, you receive a new Policy Declarations page showing limits of coverage and optional coverages. Review this information. If you do any significant remodeling or add a family room, extra bedroom or bathroom, etc., tell us about these changes so your coverage limits can be adjusted to cover the improvement.

4. Consider carefully whether your policy provides all the protection you need. Does it provide coverage for extra costs resulting from building code changes? Does it automatically increase coverage limits annually to keep pace with inflation? Does it provide additional funds if the cost of rebuilding your home exceeds the policy limits?

Make sure you know:

• Will your insurance company stand behind agreed upon repairs after a claim? Some companies are willing to put this guarantee in writing.

• Does your policy include replacement cost coverage for contents (clothing, furniture, appliances, and other personal property inside your home)? If not, you can add it by endorsement. The cost is small, the protection valuable. Replacement Cost Coverage pays for losses to your possessions at the cost of brand new items. Without this option, a covered loss to your personal possessions would be depreciated by their age and condition, reducing the size of your claim settlement.  If you have an art collection, antique furniture, jewelry, or other valuable possessions, talk to your agent about supplemental coverages, such as fine arts or scheduled property endorsements, to adequately protect your investment in these items. The cost is modest for the extra protection, and often the deductible is waived.

Consider whether you should have more coverage for personal property (contents) than your policy provides. Personal property coverage is usually 50-70% of the coverage limit for the structure. . Supplemental protection is available for a small additional premium.  Inventory your home. Prepare an inventory of personal property items, update it periodically, and keep it in a safe place outside your home, such as a safe deposit box at your bank. It will save you hours of time trying to list everything damaged or destroyed if you need to make a claim. It will also help ensure you don’t forget some items. Beck Insurance can advise you on ways to simplify the job of preparing a personal property inventory such as videotaping each room with descriptive information on the sound track.

Personal Liability

Besides making sure you have enough protection to cover possible damage to your own home and contents, you should also evaluate your exposure to liability risks. These result from damage to the property of another, or injury to a person, not a member of your household, for which you can be responsible.  In recent years it’s become common for homeowners to be sued for injuries or damages to others, even when there is no evidence of negligence by the homeowner. The reality today is if you have any appreciable assets, you are exposed to the risk of being sued. Even if you ultimately prevail in court, your legal fees and the months or years of worry and uncertainty can be a terrible burden on you and your family.

The Personal Liability coverage provided by your Homeowners Policy usually provides a limit of $100,000 or $300,000. We recommend increasing this protection with a personal umbrella policy. Not only will it increase your personal liability, but also your auto liability. Limits are available from $1 million to $10 million and beyond. The cost of this coverage is usually very reasonable.
The right coverage for you is unique – talk to Beck Insurance Agency today to find out how to get the best price and value on home insurance for you.