Insuring your home or business can be a daunting task. Police language is often confusing, which makes policyholders wonder if they are adequately covered. Although the questions below are not intended to be an exhaustive list, they will serve as an excellent starting point for better understanding your policy and knowing its limitations.
1. Do I have a risk risk or named risk policy?
Understanding the type of insurance you have is the first step in understanding the type of losses covered. An "all-risk policy" is a standard insurance for homeowners that covers general damage such as fires and weather-related damage. This type of policy will include exceptions (exceptions) for other types of damage such as floods, war and neglect. 1
2. Do I have compensation costs or actual cash value coverage on my property?
Understanding the difference between replacement cost value ("RCV") and actual cash value is crucial to understanding how you will be compensated in the event of a loss. If your insurance provides RCV for the home or the contents, you will have the cost of completely replacing your property of "similar type and quality" without deduction for depreciation. It is important to understand the maximum limit for your replacement cost. If your insurance provides ACV for the home or the contents, you will receive the cost of repairing / replacing the damaged property of the same type and quality, minus depreciation. 3 Depreciation is the reduction in the property's valuation from the time of purchase for aging or wear and tear. 4 We often see ACV with content coverage. Of course, insured often prefer RCV coverage for both home and contents to prevent heavy depreciation in the event of a total loss.
3. Do I know the conversion cost for my home?
The conversion cost of your home is not necessarily its "market value". Therefore, it is important to request that your agent complete a cost calculator / conversion calculator to determine the appropriate housing boundary.
4. Does my policy include inflation monitoring?
Property costs and valuations increase steadily over time. To ensure that the properties are not insured, many insurances offer inflation protection, which automatically increases the insurance coverage by a small percentage each renewal. 5
5. Are my collectibles and other valuable personal property insured enough?
Many policyholders are surprised to learn that their most valuable items are not properly insured in the event of a catastrophic loss. Some policyholders may need to apply for separate collectors' insurance or schedule personal belongings such as art, antiques, sports memorabilia, jewelry and other expensive items. It is recommended that these articles be produced professionally.
6. Are adjacent structures and landscape architecture covered according to my policy?
Although most insurances provide basic limited coverage for adjacent structures such as sheds, fences, free-standing garages and landscaping, policyholders should always ensure that these items are adequately insured in the event of catastrophic weather. -related hazards. 6
7. Do I have flood insurance?
Most insurances do not include flood insurance. But flood insurance is mandatory for properties in high-risk floor areas with mortgages from government-backed lenders. 7 Because floods can occur anywhere and can cause damage of more than $ 25,000, flood insurance is often recommended to cover the home and contents in the event of a flood in your area. 8
8. Does my insurance include a limitation on the trial?
A "Cost to us" provision in an insurance policy requires policyholders to file a lawsuit within one year of the loss date. 9 Some state laws override these provisions; However, it is important to understand whether your policy contains this provision in order to adequately preserve your legal rights. 1 0
1 https://insurance.az.gov/do -I-have-all-risk-or-named-risk-policy
2  Id.
3 https://insurance.az.gov/do-i-have -reimbursementcost-or-actually-cash-value-coverage-my-home-my-content
6 https://insurance.az.gov/do-i-have-or-need -speciell-täckning-intilliggende-structures – jewelery-firearms-fur-art-or-electronic
9 https://www.uphelp.org/pubs/lawsuit-limitations-insurance-policies#:~:text=Most%20insurance%20policies%20have%20a, you% 20more% 20than % 20a% 20 years  10 Id.