Replacement Cost Coverage

Thursday, March 29th, 2012

Choosing replacement coverage may not be the most cost effective option, but it could pay big dividends if your belongings are ever damaged beyond repair. Here’s why: With replacement coverage, your insurer will pay to replace your belongings instead of just paying you their actual cash value at the time of loss.

As always, consult your agent to learn more about replacement cost coverage.  Don’t have an agent?  Contact Burch Insurance at 417.877.8338, we are always glad to help.

Take The Time To Understand Your Policy

Wednesday, May 4th, 2011

Insurance can be a lot of things, a hassle, another expense…But it can also be an extremely important part of putting your world back together in the event of a claim. Insurance can provide peace of mind if you take the time to review your policy with your agent and understand how you coverage works.  Pay attention to what your policy covers and what it does not.  Be specific, if you have questions about specific scenarios, get your questions answered.  Take the time to understand you policy.

For a free, fast insurance quote, visit www.burchins.com.

Take Pictures of Your Personal Belongings

Monday, May 2nd, 2011

In the event of a Homeowners Insurance claim, an adjuster will commonly ask you to provide a list of your personal belongings that were lost or damaged.  To make things a little easier during a potentially emotional time, take pictures of your personal belongings and keep them somewhere safe.  If something should happen, you will be glad that you did.

To make sure you’ve accounted for everything you want to cover and for more detailed advise, be sure to talk to your agent.

Talking Claims: Loss Reimbursement

Thursday, April 28th, 2011

In the event of a claim, it is important to understand how you will be reimbursed for your loss.  Generally speaking, there are two basic types of loss reimbursement, actual cash value and replacement cost coverage.

Actual cash value coverage, reimburses an owner for only an item’s depreciated value. Actual cash value may be appropriate in a situation where a home is insured for an amount less that the actual cost to rebuild it.  In this case, most insurance carriers have caps, which vary by company, on the maximum loss reimbursement.

Replacement cost coverage on the other hand, normally bases the loss settlement on an amount that does not factor in depreciation.  When considering a replacement cost policy, it is important to remember that the amount of insurance should be based on the actual cost of replacement and not necessarily the market value.  Some companies apply a penalty at the time of loss for property that is not insured to its full replacement cost value.

In addition, different carriers often define “replacement” differently. There is true replacement cost coverage — which pays to replace an item with its equal — and functional replacement cost coverage, which replaces it with a functional equivalent.

Be sure to talk to your agent about the coverages and limits specific to your policy.

Not All Property Insurance Is The Same

Thursday, April 28th, 2011

There are many different types of policies available for homeowners, renters and apartment owners.  Understanding the difference can be very meaningful in the event of a claim.

There are two basic subcategories when we talk about risks covered: named peril and all peril.  A named-peril policy specifies what is covered and excludes everything else. An all-peril policies specifies what isn’t covered but includes everything else.

When you are shopping for insurance for your personal property, home or apartment, be sure to get as much information as you can.  Saving money is important, but there is certainly something to be said for value as well.

Flood Insurance: Are you protecting your biggest investment?

Thursday, April 21st, 2011