Policyholders can be left holding the bill when their property insurance valuations aren't up to date. In Ohio, wind, rain and hail damage to residential and commercial properties has prompted industry leaders to issue a public warning to citizens: Update your valuations regularly or deal with the consequences.
"If you have coverage that's less than 80 percent of the total value of your property, when you go settle a claim, the claim is not going to be for 100 percent of the loss," said Ohio Insurance Institute president Dan Kelso. "So, you have to keep your valuation on the coverage of your policy somewhat equivalent to the value of that property."
Policyholders should be proactive about seeking updated valuations, just as insurance professionals can take initiative to educate their customers about the importance of doing so. From the inception of a policy, setting clear expectations and suggestions can help motivate customers. As in Ohio, natural disasters and severe weather can also present opportunities to drive this point home.
The aim of insurance policies is to provide as much coverage as possible when something is broken, damaged or destroyed. As such, the corresponding valuation needs to reflect the actual replacement cost of a property so that a settlement will be sufficient.
Insurance professionals may be using an outdated or inefficient system to determine replacement costs for properties in their books. At e2Value, we've developed a suite of solutions for residential, commercial, farm and ranch properties that can be integrated into your existing workflow, saving time and energy. Contact us today to learn more about how our calculators and other tools can improve upon your current valuation system.