Are you shopping for car or home insurance? Look no further! Jason Levine from Harry Levine Insurance is here to share some valuable insights on understanding insurance quotes. With rising premiums and increasing litigation, it’s crucial to pay attention to the details when comparing quotes. Let’s dive in and discover what you should focus on to make an informed decision.
Coverage A: The Dwelling Amount
One key factor to consider is the Coverage A, which represents the amount your home is insured for. When comparing quotes, you might notice different numbers. Why is that? Well, the values can vary based on the computer software used to calculate the reconstruction cost. It’s important to speak with your agent about the differences and understand the reasoning behind them.
Inflation affects construction costs, making them higher than ever before. So don’t rely on the market price or what you paid for your house in the past. The goal is to determine a coverage amount that ensures you can rebuild your home just as it was, including any necessary changes to meet current building codes.
Deductibles: Not as Simple as They Seem
Next, let’s talk about deductibles. Many people misunderstand how deductibles work. For example, you might see a quote with a deductible like “$1,000/2%”. While the $1,000 represents the deductible for all other perils (excluding named windstorms), the 2% deductible is specifically for windstorms like hurricanes or tropical storms.
What’s interesting is that some companies now use the percentage-based deductible for wind and hail, even if they’re not named storms. This means that a regular thunderstorm or hailstorm could trigger the percentage-based deductible. To simplify, if your home is insured for $100,000 with a 2% deductible, you would have a $2,000 deductible for wind and hail. Keep this in mind when reviewing quotes to understand the full picture.
Coverage Limitations: What’s Included?
Finally, pay attention to coverage limitations. It’s increasingly common for policies to exclude certain risks or have sub-limits for specific coverages. For instance, animal liability and water damage might have sub-limits, meaning the policy will only pay up to a certain amount, even if the overall damage exceeds that limit. Make sure you compare quotes and understand if each quote includes full limits or if one offers less coverage for a specific peril or risk.
Now, you might be wondering, how can you navigate all these intricate details on your own? That’s where an independent insurance agent comes in. Your agent’s role is to educate and guide you through the insurance process. They can help you understand the nuances of each quote, explain the coverage options, and ensure you’re making an informed decision.
At F4VN Insurance, we pride ourselves on being educators. Our mission is to empower you with the knowledge you need to protect your assets and make the right insurance choices. We understand that insurance can be overwhelming, but with our expertise and guidance, you can navigate the complexities confidently.
When it comes to quotes, don’t just focus on the bottom line. Instead, ask yourself important questions: Does this quote cover everything I need, including pool screen enclosures for windstorms? Will my policy protect me in various scenarios, such as hurricanes affecting my screened pool or patio?
Partner with an insurance agent who prioritizes your needs and understands the value of comprehensive coverage. If your current agent isn’t meeting your expectations, it might be time to find a new one. We’re here for you, ready to answer your questions, and provide the personalized service you deserve.
For more information and personalized insurance solutions, visit F4VN. Together, let’s ensure you have the right coverage for your car and home insurance needs.
