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Þ Not insuring your home to its replacement cost: It’s important to understand the difference between
the market value and the replacement cost of a home. The market value is how
much the home can be bought and sold for. This takes into account location,
lot size, view, etc. The replacement cost is how much it would cost you to
rebuild your home in the event of its total destruction. Rebuilding costs
have increased dramatically over the past few years. Þ Not checking to see if their Homeowners Insurance
has the Extended Replacement Cost endorsement: The Extended Replacement Cost endorsement provides an
additional amount of coverage over and above the dwelling limit on your
homeowner policy. While you try to estimate the cost to rebuild correctly, in
catastrophic events, such as a hurricane, contractors become scarce and those
that are available charge premium prices. Þ Not knowing the update information on your home: In order to get the most competitive premium on an
older home, insurers need to know the following: Has your plumbing, heating,
roof and electrical system been updated in the past 20 years? A roof should not be older than 20 years.
Circuit breakers are a must. Copper plumbing is desirable and central forced air heat is also desirable.
Is there a central alarm system in your home? If so you could save 10% to 20%
on your premium. Þ Not taking a high enough Deductible: The more risk you are willing to take, the less you
will have to pay for your homeowners insurance. We recommend a $1,000
deductible to keep your premium down. After all, most homeowners have a claim
on an average of once every 12 years. Why not take the guaranteed savings of
a higher deductible instead of giving that money to the insurance company
each year? Þ Not buying enough Liability Insurance: Liability insurance protects you, your future earnings
and your family wherever you go. If someone sues you for bodily injury or
property damage, the liability part of your homeowners insurance helps to pay
for an attorney to defend you and pay any judgment rendered against you. Buy
a minimum of $500,000 of liability insurance and consider a personal umbrella
policy, which protects you above and beyond the liability limits of your auto
and homeowners insurance policies. Þ Not knowing what the limits on jewelry, watches,
firs, money, collectibles and other valuable items are in your policy: Many homeowner policies limit coverage for theft of
jewelry to $1,000 or less. For a few dollars more, you can increase this
limit to $5,000 or $10,000, depending on the insurer. If your stone falls out
of your diamond ring, it isn’t covered unless you have purchased an
endorsement protecting your jewelry. Ask us how to provide coverage for your
valuable items and collections. |
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Biddle & Company
Insurance Brokers 3650 Winding Way ٠Suite 200 Newtown Square
PA 19073 Voice:
484.427.8900 Fax:
484.427.8923 |
