Going into storm season, it is important that you have a good understanding of what kind of homeowner’s insurance policy you have in case your home is damaged. We know that there are some confusing components to different policies, so we would love to help in any way that we can. In this blog, we are going to lay out several key things that are important to know about your homeowner’s insurance policy.
First, you should know your agent. You want to make sure that you know, like, and trust them. You want someone who you can get in touch with quickly when something happens where you need to file a claim. If you don’t know your agent or you don’t like or trust them, let us know! We would love to refer you to one of our referral partners!
Second, you need to understand your policy. Do you have an ACV, RCV, or RPS policy? ACV (Actual Cost Value) means that your policy will cover what the property is currently worth currently after depreciation. RCV (replacement cost value) means that your policy will cover what it will cost to replace your property to its original value. RPS (Roof Payment Schedule) is a type of policy common with State Farm and All State where you are responsible to pay more and more as time goes on. If you have an ACV or an RPS policy, you will likely end up paying more than your deductible even if the entire roof is damaged. Get with your agent about options to get that changed.
Third, you should know what your deductible is. Different policies have different options when it comes to how your deductible is determined. Sometimes, it is a standard amount of money that is paid out of pocket no matter what type of claim there is. Sometimes, you will have a different deductible amount listed by each type of potential claim. You may pay a different amount for a wind claim than you would for a hail claim or a fire claim. Sometimes, you will pay a percentage of the net worth of the home or of the job. Make sure you ask your agent what your deductibles are and how they are calculated so you aren’t surprised once an event occurs and you are filing a claim!
Fourth, do you have code coverage on your policy? You will want to know what your policy covers if something on your home is out of code when you make a claim. Next, are there any exclusions in your policy? Are there items specifically listed on your policy that won’t be covered?
Finally, make sure that you know how long you have after an event to file a claim before the depreciation becomes unrecoverable or you incur a penalty when you file. If you reach out to us quickly after a storm, you won’t have to worry about this, but you should know what the timeline is on your policy so you make sure to file on time to make sure you get the most coverage possible.
As always, reach out to us with any questions that you have! We would love to help you!