Media and finance experts talk a lot about "holes" that may exist in a homeowners' insurance policy. For example, property owners might not have the coverage they need in the event of an earthquake, flood or other natural disaster that's not included in their current policy.
"The last thing you want to hear after your home has been flooded or a hurricane knocked down your gutters is that your insurance policy won't cover the damage," writes Kimberly Palmer of U.S. News and World Report. "And yet, that is what many homeowners are surprised to hear, even after dutifully paying for their policies for years. Common policy holes — often laid out in fine print — can leave homeowners paying for costs out of pocket."
However, the biggest "hole" a policyholder can encounter is when they lack sufficient coverage to address the most common of incidents and damages to the property. This occurs when the most recent replacement cost doesn't reflect the actual price of rebuilding the home from scratch. This discovery can lead to unexpected out-of-cost expenses when settlements don't align with the reality of rebuilding. The best way to avoid this problem is to conduct annual and as-needed valuation updates to ensure the latest figure is the most appropriate.
It's important for your clients to have all their bases covered in terms of disaster insurance but their standard policy should also be gap free. At e2Value, our suite of solutions for insurance professionals provides a reliable and accurate replacement costs. Contact us today to learn more about how our property valuation calculator can be integrated into your current workflow, saving your business time and money.