There are many misconceptions by property owners about what homeowners insurance covers in general and many homeowners do not know specifically what their policy includes and – more importantly – what it doesn’t cover. Here are two resources that can be shared with your homeowner clients to help them understand these types of policies better.
In the article, Actual Cash Value vs. Replacement Cost for Homeowners Insurance, actual cash value and replacement cost are each explained, as well as the difference between the two types of policies. The author also mentions the importance of creating an inventory of personal belongings and suggestions about where to store copies of it. This inventory is essential regardless of which type of policy the homeowner purchases.
The article, The Average Cost of Homeowners Insurance, not only provides information about costs but also describes the different types of policies, the different types of coverage within policies and various factors that affect the cost of a policy. One of the principal factors that affects cost, besides the type of policy purchased, is the area where the home is located. The article also describes ways to lower the cost of homeowners insurance.
Whether discovered after a single loss or a major disaster, underinsurance is an issue for all involved parties. Accurate replacement costs and insuring to value helps property owners rebuild what they’d previously had, receive sufficient contents coverage, provide the proper value for flood insurance and—most of all—prevent an unhappy client. e2Value keeps up with changes in costs to provide you with fast, cost-effective and accurate replacement cost valuations. Contact us about estimator tools for Mainstreet® homes, high-value homes, mobile manufactured and kit homes, condos and co-ops, commercial and farm & ranch structures.