Insurance Tips
- Ensure policy covers full replacement costs. ACF coverage is actual cash value and covers only depreciated value of the property (what a buyer would pay for the home). Replacement cost is the expense needed to repair or replace the property if need be.
- See if the policy offers inflation guard and adjusts annually. If it doesn’t, update the actual building value regularly.
- Inquire about the possibility for law and ordinance coverage if desired, which covers costs to bring anything up to code if you ever have to rebuild part or all of a property. (More for rentals, multi-family or commercial properties)
- Sewer backup is a great addition for coverage. Depending on the area you live in, you might consider earthquake coverage as well. The typical deductible for earthquake is 1% of home value.
- Is there a separate deductible for wind and hail?
- Does it make sense to up the deductible? Do the math to see how much you would save a year with this action. Raising a deductible from $250 to $1000 should lower payments by 10 – 25%. (The average homeowner makes a claim once every nine years.)
- If you have large assets or feel at risk due to your profession, an umbrella policy can add protection. Typically payments of $150 – $300 annually will boost the liability coverage if sued from $100,000 to $1 million.
- If you do any additions or updates, inform your company, so it is covered as well.
- Make a video or take pictures of all valuables in the home, interior and exterior, and keep it in a safe place. Make a video or pictures of damage when it happens.
- If a claim is made on a property it goes on record for seven years. When you try to sell a property, the buyer will have higher coverage due to past claims. Annual CLUE reports are suggested.
- If an emergency does take place, you must take all precautions to make sure you limit the damage. (Ex- The furnace goes out in the winter. Immediately shut off water, drain pipes and dump anti-freeze into any toilet and sink.)
- For more information and tips click here
- Or contact Bruce Inlow with IMC Insurance at:
- 913-491-8511
- brucei@imcinsurance.net
