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How does your tenant-owner policy respond to total losses?



  Total Home Loss

While homeowner insurance covers people and families for many daily claims involving water damage, roof damage and the like, it may be possible for you when the unthinkable hands and your house are completely destroyed.

Dozens of questions arise when a catastrophic circumstance arises. However, it is a question you should ask yourself before such a situation: How will my homeowner insurance policy respond to the loss of my home?

Traditional homeowner policies have specific restrictions on home insurance, stand-alone structures located at the residential premises and for content. When these insurance limits are exhausted, coverage ceases. But over the years, several coverage improvements have entered the market and homeowners now have additional options to protect them from the worst case of not having enough insurance to sufficiently build their home.

For example, cost increased options, giving the tenant an additional percentage (usually 25% or 50%) in addition to the home mortgage limit to rebuild his home in the event of total loss. Having seen some total loss situations over the years, this extraordinary amount is almost always necessary. Entrepreneurs do not give discounts when they know that an insurance company writes the check to build a home. In addition, when homeowner development is being built, bulk materials are purchased at a discounted price. The same does not apply when materials for a single home are purchased.

Homeowners can take things one more step and buy guaranteed replacement cost coverage as opposed to improved replacement cost coverage. This type of installation pays some amount to completely rebuild your home in the event that it is destroyed.

In both cases, the insurance company will require you to properly insure your home to what they consider to be an exact replacement cost amount when the policy is issued. This is achieved by specifying your home's properties (annual built, square meters, exterior materials, etc.) to a program that calculates replacement cost data based on current construction costs.

One last thing to investigate is whether your policy has a payout order in it. This allows you to get a check on how much the home was insured after a total loss; Therefore, you do not need to rebuild your home if your insurance policy contains this feature.

Central offers all these features in their range of homeowners insurance products. Talk to your independent agent or click here to learn more.

The above information is of a general nature and your policy and cover may be different from the examples given. Read your policy in its entirety to determine your actual coverage available.


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