Are You Covered? Don’t Be Caught Underinsured!

Are you covered? Don’t be caught underinsured!

By Melissa Kamp

Consider the cost of rebuilding your home to avoid being underinsured in Fairfield and Westchester County. Does your homeowner’s policy have sufficient coverage limits to help you recover fully after a loss? Will you avoid incurring serious financial burdens?

“Am I underinsured?” is a question many people don’t ask, and if they have a claim, it can leave them with unexpected expenses. It is time to ask Daigle & Travers Insurance to review your policy. We have the tools and knowledge to evaluate your risk; you may find your risk is higher than you think. That’s because replacement costs can be affected by several factors that many people don’t consider.

Factors to Consider

Rebuilding Costs

Rebuilding a home is more expensive than building from scratch. Site accessibility, building codes and economies of scale all play a part. After a neighborhood of homes is established, removing debris and using heavy equipment can be more time-consuming and expensive. Extra care must be taken not to damage neighboring properties.

Scarcity of Resources

After natural disasters, the demand for labor and materials often exceeds supply, causing costs of both to increase.

Age of Your Home

Homes built prior to 1945 typically have much higher reconstruction costs. This is due to the retrofitting of materials or requirements to bring systems up to code.

Coinsurance

Homeowner policies include a coinsurance provision requiring you to insure your home for a specified percentage of its full value. If the limit of coverage on your home doesn’t meet this requirement, your policy won’t pay the full loss amount. Most insurance carriers require that you are insured at least 80% to value. If you’re insured 70% to value and have a claim resulting in damages of $100,000, your payout will be $70,000. Even if you carry insurance for a higher value, $70,000 will be the cap.

Your Daigle & Travers Insurance Agent can help!

Evaluate the kinds of insurance you need. Your Daigle & Travers Insurance agent can determine if you are adequately covered for events that are likely in your area, such as earthquake, flood and wind damage. Remember to ask if separate deductibles apply for these high-risk losses, such a hurricane force wind. Some policies require much higher deductibles for these events. If this is the case, create a plan to finance those deductibles should you need it.

Daigle and Travers Insurance Agency specializes in customized insurance portfolios for the high net worth individuals and businesses. We work with over 30 carriers including Cincinnati, Pure, AIG, Chubb, MetLife, National General, BerkleyOne and other high-end, reputable companies. We serve all areas of Darien, Westport, New Canaan, Greenwich and are licensed in over 35 states nationwide.  Contact us today at 203-655-6974.

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