i S G
i S G
INSURANCE
INSURANCE SERVICES GROUP
BUILDING A BRIDGE TO YOUR FUTURE
Property Insurance Is the Key to a Better Life
Many people don’t understand the importance of purchasing and maintaining a property insurance policy. The truth is that purchasing a policy that includes property insurance is the best way to protect yourself, your family, and your business from financial liability in the event that a misfortune beyond your control occurs. While you might not have property insurance because you live in a safe area, there are more than enough reasons for you to get it anyway.
Homeowner’s Insurance
Many people do not know that you can own a home without purchasing a home insurance policy. Be advised that if you do choose to forego home insurance, you may not be able to finance your home. Homeowner’s insurance is probably the most widely-purchased property insurance with the most claims. When you consider all of the unfortunate things that can happen to homes, investing in property insurance for your home is a smart idea for both the short-term and long-term.
Commercial Property Insurance
All business owners should feel compelled to buy a commercial property insurance policy. With an investment like your own business, it goes without saying that you need to make sure that safety systems are put in place in case the worst happens. When you open a business, your likelihood of being sued raises significantly. Whether or not this happens to you, being ready for this unfortunate event means purchasing a business insurance policy that includes commercial property insurance. If it helps you to understand the importance of property insurance for a business, think of everything that can happen on your property and multiply it by two. Anything for which you could be sued on your private property at your home could also happen at your businesses, plus more. Be prepared and buy a commercial property insurance to protect your business.
Flood Insurance
Again, many people don’t know that their regular property insurance doesn’t include coverage for flood damage. While homeowner’s insurance will cover for some natural disasters, other natural disasters, including floods, may be left out. Whether you’re insuring a home, vehicle, or business, make sure that you have complete understanding of your coverage and make sure that you ask about flood insurance. Floods may not be common in every part of the country, but if your home or business is located near a body of water, be it a lake, an ocean, a river, or a stream, consider adding flood insurance to your property insurance. If you aren’t sure whether or not your insurance provider offers flood insurance, just ask! Your local insurance provider will be more than happy to answer any questions that you may have about your property insurance policy.
Natural Disaster Insurance
If you have property insurance, you may be covered for natural disaster insurance. However, it’s always smart to ask your insurance provider what your policy entails. Hail, hurricanes, tornadoes, earthquakes, and many other types of inclement weather can have a serious effect on your property and it is important that you are properly prepared for anything that nature may have in store. Investing in property insurance is a surefire way to protect your finances from disaster.
How Property Insurance Works
Perils covered by property insurance typically include select weather-related afflictions, including damage caused by fire, smoke, wind, hail, the impact of snow and ice, lightning, and more. Property insurance also protects against vandalism and theft, covering the structure and its contents. Property insurance also provides liability coverage in case someone other than the property owner or renter is injured while on the property and decides to sue.
Property insurance policies normally exclude damage that results from a variety of events, including tsunamis, floods, drain and sewer backups, seeping groundwater, standing water, and a number of other sources of water. Mold is usually not covered, nor is the damage from an earthquake. In addition, most policies will not cover extreme circumstances, such as nuclear events, acts of war or terrorism.
Understanding Property Insurance
There are three types of property insurance coverage: replacement cost, actual cash value, and extended replacement costs.
-
Replacement cost covers the cost of repairing or replacing property at the same or equal value. The coverage is based on replacement cost values rather than the cash value of items.
-
Actual cash value coverage pays the owner or renter the replacement cost minus depreciation. If the destroyed item is 10 years old, you get the value of a 10-year-old item, not a new one.
-
Extended replacement costs will pay more than the coverage limit if the costs for construction have gone up; however, this usually won't exceed 25% of the limit. When you buy insurance, the limit is the maximum amount of benefit the insurance company will pay for a given situation or occurrence.