Are You Really Covered?

When using the insurance services you hoped you would never need, the last thing you want to discover is an unpleasant surprise in your policy coverage.  How often do you read your insurance policy renewal?  I'll wait...

For the average person who does not read their annual policy renewal in detail, you may want to at least start looking at your declarations page.  The declarations page, a summary of your coverage, will answer at least three important policy question we ask all of our clients:

1. Is my dwelling coverage RCV?  

RCV stands for Replacement Cost Value and having this type of policy will ensure you receive the full replacement cost to repair any damages to your home.  Otherwise, be prepared to receive only a partial settlement as the insurance companies have adopted the practice of depreciating claims.  An ACV policy, or Actual Cash Value policy, will leave you with significantly less money to get the job done right. 

2. Do I have ordinance or law coverage?

Ordinance or law provides for compliance with local building code.  It allows for important roofing system elements such as drip edge, starter shingles, and ridge cap shingles.  Typically, it is underwritten as 10% of the dwelling coverage.

3. What is my wind & hail deductible?

Often overlooked, the wind & hail deductible can vary significantly from the general dwelling deductible.  It's always prudent to know this figure.  A deductible written as a percentage of your dwelling coverage could leave you wanting.  Imagine a 2% wind & hail deductible on a $500,000 dwelling coverage policy--you're talking $10,000 your insurer won't pony up.  Don't let this be news to you.

There are myriad other policy provisions, endorsements, exclusions, and other boring insurance jargon that could severely hurt your claim.  It is strongly recommended to have someone with insurance expertise review your policy before you move forward with a claim.  A Peachtree Restorations project manager will be happy to study your policy and guide you in the right direction at a complimentary property evaluation.