Coverage for Resident Employees
Have you ever wondered whether you would be held responsible if your housekeeper tripped and fell inside your house? What about the person who pressure cleans your roof? Or the one who walks your dog? Understanding risks when hiring a nanny, housekeeper, gardener, or handyman will help to determine if the liability coverage on your homeowners policy is sufficient, or if you…
Replacement Cost Value (RCV) vs. Actual Cash Value (ACV) vs. Agreed Value
When determining how much money will be given after a loss, insurance companies typically use one of two valuation methods: Replacement Cost Value or Actual Cash Value Replacement Cost Value: The insurance company will pay to replace the damaged or stolen property with something of the same kind and quality, without taking into consideration depreciation. If the 50-inch TV you bought…
Keeping the Right Policy Limits
Since construction costs fluctuate and generally increase as the years pass, it is important to re-evaluate the limits on your policy each year. Some insurance companies will automatically adjust the limits on your policy, taking into consideration the cost of inflation. Remember, you need to insure the house for whatever it would cost you to rebuild it today. If you have…
Determining My Home’s Replacement Cost Value
When you are insuring your home, the limit for your dwelling on the policy should be the amount it would cost to rebuild the property today. Simple enough. But the question becomes: How do I determine my home’s replacement cost value? To start, when determining the replacement cost value of your home, you will first need to understand what type of…
Home Insurance Forms
Home insurance comes in different shapes and sizes. This will be a quick cheat sheet to help you understand the different forms, and help you make an informed decision when choosing a policy for your home. Insurance Terms: Before discussing the different forms, there are a few “insurance terms” you need to know: Peril: A danger, a threat, a risk,…