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Considerations when reviewing your insurance coverage from Rudy Painter

By Bill Jenkins - Countybank
Jan. 20, 2009 at 11:57 AM

1. Most people ask why do we insure the home for more than they bought it for or most time more than they could sell it for. The reason is that we must insure for replacement value of the home (what would it cost to rebuild new) not the sales value. Those can be greatly different. Let’s say you have a $250,000 house with a replacement cost of $300,000. If you only insure it for $250,000 and your kitchen burns, you’ll only get reimbursed for 80% of the cost to rebuild, because you only insured for 80% of replacement value.

2. We encourage clients to video tape or make digital photos of the interior of the home and place them in a safety deposit box at their bank so at the time of the loss they can sit down with the adjuster and get a better idea of the things they really had in the home. If you’re really detail oriented, you can make an inventory, but photographic evidence is still best.

3. Umbrella liability is probably the cheapest and most comprehensive liability coverage you can buy. In most cases, for less than $250 you can get an additional $1,000,000 of coverage. If someone gets hurt in your home or on your property, or in an accident involving your car, this insurance picks up where the liability limits of your other policies leave off.

4. Jewelry coverage and fine arts coverage are things people assume are covered. There are limits to coverage but the best way is to get current appraisals and specifically schedule them on the policy. This applies to jewelry, musical instruments, art, antiques, and specialty items like high end electronics. If in doubt, best to ask and be sure.

5. Advantage of an independent agent: The ability to shop your insurance coverage with several companies and help you decide what is the best coverage for you. For example, we are affiliated with more than 75 companies, so every year we can look at who’s offering the best and most cost-efficient coverage that matches your needs. Also at the time of the loss we like to discuss the claim with the client to decide if this is something they really want to turn in or would it be better to handle it themselves.

6. Look at the deductible on your home and car policies to be sure you are getting the best value. This is more so on home than car. To go to a larger deductible on the cars does not always save enough money.

7. Renters! Look into a renter’s policy to cover your valuables and belongings. This one gets overlooked a lot, but if your building catches fire or you are robbed, what would you do? This is inexpensive peace of mind.

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