Homeowners Insurance Agencies Florida - Loss Settlement

Homeowners Insurance Agencies Florida

The loss settlement conditions of the property coverages of homeowners policies comprise an area where the policies of various insurers are likely to substantially differ. Thus, a somewhat more generic discussion is appropriate. The issues that arise under the loss settlement conditions involve the collision of and interaction between a number of concepts and policy provisions, including:

• policy limits;
• the concept of insurance-to-value and the effect of your failure to maintain sufficient insurance-to-value;
• the concept of actual cash value;
• the different forms of replacement costs coverage;
• the concept of increased costs of construction or repair due to the operation of new or different building code requirements or other such laws; and,
• the concept of repair or replacement with like kind and quality along with the related concept of betterment.

POLICY LIMITS AND INSURANCE-TO-VALUE 

The availability of coverage for dwellings and other structures is crucially dependent on the concept of insurance-to-value. The policy limits for these coverages are stated in the policy's declarations. Choosing adequate policy limits is a crucial decision. Adequate insurance-to-value is a precondition to the availability of any of the varying forms of replacement cost coverage as may exist or nominally be provided for in your policy. Homeowners Insurance Agencies Florida
 
No one should consider, insuring only to actual cash value. Insuring to actual cash value makes it a virtual certainty that you will have only partial coverage in the event of a loss. In the event of a moderate loss, insuring only to actual cash value could make the difference between being able to repair your home and replace your contents and being forced to abandon your house.

The concept of adequate insurance-to-value is another reason why your agent's knowledge and expertise is crucial. He or she needs to be up to date on current construction and materials costs. All insurers and their agents rely on regionally adjusted construction costs guides for recommending and setting dwelling policy limits. Some of these guides are better, more realistic, and more current than others.

You need to be able to describe your home to an agent when seeking a quote accurately - that includes square footage; number of stories, when built, type of construction (frame, stucco, brick); type and age of roof; type of electrical and plumbing systems; type of furnace and water heaters; etc.

The list goes on, including any special or unusual features that apply to the home. These can include such things as decks, awnings, swimming pools, patios, canopies, and unusual masonry or stonework.

This is especially important if you have unusual separate structures whose values are likely to exceed the standard policy limits provided. Many insurers arbitrarily set the policy limit for separate structures at only 10% of the dwelling limit. If you have a guesthouse or other unusual, higher than normal value, separate structure on your premises, you need to provide the agent with as much detail about that structure as you do for your main house.
 
Similar comments apply to a garage with a finished space such as a bedroom, office, or studio or a photographic darkroom. Homeowners Insurance Agencies Florida

Tell your agent everything about your home and property's features that you do not want to have to spend your own money on to repair or replace if your policy limits turn out to be inadequate to cover a loss. Do everything you can to avoid under-insuring - assure that you have sufficient insurance-to-value. You are far better off over-estimating necessary policy limits rather than underestimating them. You are probably going to need to do some homework and will potentially need to be a little bit pushy to assure adequate insurance-to-value. A failure to maintain policy limits at a level sufficient to qualify for whatever form of replacement cost coverage your policy provides can have the result that your loss will be covered only on an actual cash value basis.

 
When it comes to your home, you cannot really rely on real estate values as an indicator of actual cash value for insurance purposes, because the sale price of real estate includes the value of land and does not necessarily reflect construction costs. That's why understanding what construction costs are or can be is so crucial to the concept of insurance-to-value.

Each insurer defines replacement cost differently. There are six general categories of coverage for disclosure purposes as to the different forms of replacement cost coverage. From these general categories you can develop the right kinds of questions to learn what levels of coverage your insurer offers, what policy limits you need to carry to qualify for each level of coverage, and thereby to determine whether you want to seek alternative quotes for differing from other insurers.

Next post, we'll highlight six different levels of coverage you can take note of. Make use of these information to claim your necessary rights. Remember, over-claim is better than under-claim. To get more information, you can get Homeowners Insurance Agencies Florida.

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How To Claim Insurance For Home - Duties After Loss

How To Claim Insurance For Home

This is an extensive group of conditions comprising eight sections, that further encompass thirteen subparagraphs. All of these are highly important policy provisions standard to all homeowners policies and merit your attention.

The introductory paragraph to this section states that the insurer has no duty to provide coverage for an otherwise covered loss if the insurer is prejudiced by the failure of the named insured, another insured, or a representative of an insured, to comply with the list of duties that follows.

• Give the insurer or the insurer's agent prompt notice of the loss.
• Notify the police in the event of a theft loss.
• Give the issuer of a credit card, electronic fund transfer card, or access device notice of loss or of unauthorized use of same as required by the provisions of the agreement between the issuer and the insured.
• Protect the property from further damage. If repairs to property are required, the insured must:
• make reasonable and necessary repairs to protect the property and
• keep an accurate account of repair expenses.
• Cooperate with your insurer in its investigation of the claim. This means returning phone calls, and responding to correspondence promptly. If you do not understand what a communication or an information request from your insurer means or why it is important, promptly call the claim representative or your agent and ask for an explanation so that you can provide an appropriate response. Any delay on your part that reflects mere silence in response to an insurer's request for information (in appropriate cases) can be taken as evidence of a failure to cooperate.
• Prepare an inventory of damaged personal property which shows:
• the quantity;
• the description;
• the actual cash value; and,
• the amount of loss of all items for which loss is claimed.

You must attach all bills, receipts, and related documents that justify or support the figures shown in the inventory. This can potentially be a gargantuan task in the event of a sizeable loss. Most people can recall reasonably well what items have been damaged, lost, or destroyed so that the quantity and description portions of the inventory are likely to be easier to prepare. How To Claim Insurance For Home

Areas that can be problematic here are where the insured may have extensive collections of books, or audio recordings. Other items, such as furniture that has been passed along through a family with no clear record of the value or acquisition cost, can also be problematic. The valuation issues can be even more difficult - few of us retain the receipts for everything we buy.

The requirement that the insured submit an inventory of the damaged, destroyed, or lost property is one of the reasons that it is frequently suggested that insureds videotape or photograph the interior of their homes with closets and cabinets open from time to time. This will create at least a partial visual record of their belongings and that videotape or set of photographs should be stored in a safe place, such as a safe deposit box.

Allow the insurer to examine the insured property as often as the insurer reasonably requests; provide the insurer with records and documents upon its request and permit the insurer to make copies; submit to an examination under oath, outside the presence of any other insured; and, sign a, transcript of the examination under oath. 

Examinations under oath are often, but not always, requested by insurers in cases in which the insurer perceives the insured to be uncooperative with the investigation of the claim. Examinations can also be requested when there are aspects of the claim that suggest that there may be a fraudulent aspect to the claim. Refusal to submit to an examination under oath can afford the insurer a basis for refusing to pay a claim in its entirety.

The examination is conducted before a court reporter, who takes down all the questions and answers, and transcribes them into a booklet form after the examination has concluded. The person who conducts the examination is usually a lawyer retained by the insurer. 

Under the laws of most states, the insured who is being questioned has the right to be represented by counsel at his or her own expense at the examination. The degree to which the insured's lawyer can object to questions varies from state to state.

Usually, when an insurer demands an examination under oath it also demands a lengthy list of documents for the insured to produce for inspection and copying at the examination. These document inspection requests in conjunction with examinations under oath can be duplicative of previous demands by the insurer, which is the insurer's prerogative.

Due to concerns that some insurers exercise their rights to demand an examination under oath unreasonably, some states have enacted some restrictions, For example, the California Insurance Code now provides that insurers may conduct an examination under oath only to obtain information that is relative to and reasonably necessary to process or investigate the claim. This, however, is a rather nebulous standard. How To Claim Insurance For Home

Examinations under oath may be conducted only on reasonable notice, at a reasonably convenient place, and for a reasonable period of time. The insured has the right to have counsel present, who can assert any objection to a question that would be permissible in a deposition under state or federal law. 

The insurer must provide the insured with a free copy of the transcript of the examination under oath after it is transcribed and must permit the insured to make sworn corrections to the transcript. 

Meet the proof of loss requirements that are preconditions to claim payment by the insurer. The signed and sworn proof of loss must be submitted to the insurer by the insured within sixty days of the insurer's request. It is common for the insurer and the insured to agree to extensions of the sixty-day deadline for submission of the proof of loss. 

You should confirm any such agreement in writing. The proof of loss must set forth, to the best of your knowledge and belief, the following information:

• the time and cause of loss;
• the interest of all insureds, all others on the property involved, and all liens on the property;
• any other insurance that may cover the loss;
• any changes in the title to or occupancy of the property during the term of the policy;
• specifications of damaged buildings and detailed repair estimates;
• the inventory of damaged, destroyed, or lost (in the ease of theft) personal property;
• receipts for any additional living expenses incurred and records that support the fair rental value loss if a claim is being made for same; and,
• evidence or an affidavit that supports a claim under the credit card electronic fund transfer card coverage, stating the amount and cause of loss, if such a loss is being claimed.

Hope you have a good understanding about how to claim your rights. Next post we'll talk about Loss Settlement. If you want to learn more, you can get How To Claim Insurance For Home.

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Affordable Insurance Company Claims - Comparsion Shopping For Insurance

Affordable Insurance Company Claims

The exclusions of homeowners policies are another area in which comparison shopping may help you make an informed choice of insurer. Homeowners insurance policies may vary widely in terms of how particular exclusions are worded or exceptions to exclusions are worded that have the practical effect of providing broader coverage. 

The subject of exclusions is one in which homeowners insurers seek to compete with each other, although their competition is often not very transparent to the insurance consumer. It often requires actual comparison of specimen policy forms from various insurers to discern the differences in the scope of exclusions. Unfortunately, some insurers will not give out specimen copies of their policies and too few consumers take the time to ask for them.

EXCLUSIONS ADDED BY OTHER INSURERS 

Some insurers' policies add exclusions not contained in the ISO HO 2 and HO 3 policies. For example, a relatively common exclusion precludes coverage for loss resulting from an increase in hazard at the insured premises that is within the knowledge or control of an insured. Affordable Insurance Company Claims

A methamphetamine lab is an example of one extreme. Such activities are criminal in nature and involve the use of highly flammable and explosive chemicals. Failing to replace broken or nonfunctioning door locks is another example - failing to secure premises renders them more vulnerable to theft and vandalism losses.

Under the law of most states, where an exclusion of this nature refers to knowledge or control of an insured, the knowledge or control of any insured will have the effect of defeating coverage for other insureds who did not have knowledge of or control over the increase in hazard that leads to loss.

Water damage exclusions also vary from insurer to insurer. The ISO policies exclude coverage for sewer back-up losses. Some insurers' water damage exclusions do not exclude coverage for sewer back-up losses. If your house is situated where it may be subject to such losses, this is an issue that is worth spending your time to inquire whether coverage is available from an insurer at a premium that fits your budget.

Another point to consider when you are comparing policy forms from various insurers is to examine ensuing loss clauses that are part of exclusions. Ensuing loss clauses are exceptions to exclusions. Some ensuing loss clauses limit coverage to ensuing fire or explosion. Other ensuing loss clauses extend coverage to ensuing loss caused by any covered cause of loss. And, of course, there are examples between these two extremes. 

Conditions

Policy conditions address issues such as the insured's duties in the event of loss or how claims are valued and settled. They also provide for mechanisms for resolution of disagreements between the insured and the insurer over the amount of the loss. Many of the conditions applicable to the property coverages have their origins in whatever form of standard fire policy is deemed to be part of your homeowners policy as a matter of law of the state where you reside. Affordable Insurance Company Claims

Conditions are divided into two sections. First there is the group of conditions that applies only to the property coverages. Second, there is a group of conditions that applies generally to all coverages, both property and liability. Each group will be addressed.

CONDITIONS APPLICABLE TO PROPERTY COVERAGES

The first condition is entitled Insurable Interest and Limits of Liability. This condition provides that regardless of whether more than one person has an insurable interest in covered property, the insurer will not be liable in any one loss to any insured for more than that insured's pecuniary interest in the property as of the time of loss. This condition also provides that the insurer will not be liable in any one loss more than the limit of liability or policy limit that applies to the item of property in question.

The next post we'll discuss more about what to do to claim your losses. It is very important for you to know, so check out our next blog post. At mean time, you can get many more useful information about insurance by getting Affordable Insurance Company Claims online.

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House Insurance Cost Estimator - Additional Insurance Exclusions To Take Note

House Insurance Cost Estimator

ADDITIONAL EXCLUSIONS 

The next group of exclusions in the ISO HO 2 and HO 3 is essentially the flip side of several of the exceptions to certain of the personal property named perils, and/or of certain of the Additional Coverages.
 
Collapse
 
The first of these exclusions is for loss involving collapse, except as is provided in the Additional Coverages peril of collapse. As discussed, the collapse coverage is essentially a named perils coverage, which, under the ISO HO 2 and HO 3 policies, requires an actual collapse of the building or parts of the building for coverage to arise. This collapse exclusion is also modified by an ensuing loss clause that provides that coverage exists for loss ensuing from an otherwise noncovered collapse if that ensuing loss is caused by a covered peril.

Freezing

The second of these exclusions is for freezing of a plumbing, heating, air conditioning, fire sprinkler system, household appliance or for discharge, leakage, or overflow from within the system or appliance caused by freezing. There are exceptions to this exclusion. This exclusion does not apply if the insured has used reasonable care to maintain heat in the building or has shut off and drained the water from the system or appliance. House Insurance Cost Estimator

As with the personal property named peril, plumbing systems and household appliances are defined as not including sump pumps or related equipment, roof drains, gutters, downspouts or similar fixtures or equipment. This is an example of an exclusion that is essentially the flip side of one of the personal property coverage named perils. Thus, the scope of coverage for the peril of freezing is essentially the same for the dwelling and other structures as it is for personal property.
 
Freezing end Thawing 

The next exclusion precludes coverage for freezing, thawing, pressure, or weight of water or ice whether driven by wind or not to four categories of property:

• fences, pavements, patios, or swimming pools; 
• footings, foundations, bulkheads, walls, or any other structure or device that supports all or part of the building or other structure;
• retaining walls or bulkheads that do not support all or part of the building or other structures; and,
• piers, wharves, or docks. (This exclusion also has some parallels to the subsurface waters portion of the water damage exclusion.)

Theft of Construction Materials

The next exclusion in this group is for theft of construction materials and supplies from a dwelling under construction until the dwelling is finished and occupied. This exclusion is parallel to one of the exceptions to the personal property named peril of theft.

Vandalism and Malicious Mischief
 
The next exclusion is for loss caused by vandalism and malicious mischief, but only if the dwelling has been vacant for sixty or more consecutive days before the loss. This exclusion does not apply to dwellings in the course of construction. House Insurance Cost Estimator

Repeated Seepage or Leakage of Water
 
The next exclusion is for loss caused by constant or repeated seepage or leakage of water or steam over a period of weeks, months, or years from within a plumbing, heating, air conditioning, fire sprinkler system, or household appliance. This is a more specific example of the faulty, inadequate, or defective maintenance and neglect exclusions. 

As made clear by the personal property coverage named perils, coverage exists if the personal property caused by accidental discharges of water from such systems, including those caused by freezing. Further, the freezing exclusion applicable to the dwelling and other structure coverages has exceptions that will permit some coverage.
 
The point here is that it is the insured's duty to maintain his or her property and to take reasonable steps to protect it from loss. Failure to correct such leaks over a period of weeks, months, and years renders such water damage nonaccidental, nonfortuitous, and hence, not covered.

Mold, Fungus, or Wet Rot
 
The next exclusion in this group is for loss caused by mold, fungus, or wet rot. As with personal property coverage, if the mold, fungus, or wet rot damage results from an accidental discharge and is not apparent to the insured because it is hidden, coverage will exist. This exclusion therefore is parallel to and consistent with the constant or repeated water leakage exclusion, as mold, fungus, or wet rot resulting from such constant or repeated water leakage is not covered.

Exclusions Subject to an Ensuing Loss Clause 

The next group of exclusions is unified by a lengthy exception that is essentially parallel to the personal property accidental water discharge named perils, These exclusions are subject to an ensuing loss clause. These exclusions are: 

• wear and tear, marring, and deterioration, which are all exampies of expected, nonfortuitous losses;
• mechanical breakdown, latent defect, inherent vice, or any other quality in property that causes it to damage or destroy itself (parallels the faulty, inadequate, or defective materials used in construction exclusion);
• smog, rust, dry rot, or other corrosion (parallels the maintenance exclusion); 
• smoke from agricultural smudging or industrial operations (corresponds with the exception to the personal property named perils coverage for smoke); 
• discharge of pollutants, unless the release of pollutants is caused by one of the personal property coverage named perils (pollutants is specifically and quite broadly defined in the policy); 
• settling, shrinking, bulging, or expansion, including resulting cracking of bulkheads, pavements, patios, footings, foundations, walls, floors, roofs, or ceilings (this exclusion dovetails with the earth movement, subsurface water damage, freezing, and collapse exclusions); 
• birds, vermin, rodents, or insects (which include termites). These exclusions are specific examples of failure to maintain; and, 
• animals owned or kept by an insured. 

I hoped these few posts could enlighten you about the exceptions and exclusions of insurance coverages. So you have to take note when you purchase your plan, and double check with your agent to make sure they are covering the needs you want. To learn more, you can get House Insurance Cost Estimator right away!
 

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