Author: Dave Berliner
When determining a home’s value, homeowners tend to think about “market value” or what it might sell for. This number can fluctuate considerably and is primarily dependent on what buyers believe a home is worth. When insurance carriers determine a home’s value, they look at the numbers from a much different angle. Replacement cost coverage is based on the total cost of reconstruction. This number is usually steadier than a home’s market value, with a typical annual increase of 4% to 5%.
Summer has a distinct sound – hamburgers sizzling on grills, music playing at outdoor festivals and bats crashing into baseballs. You’ll also likely hear the crack of thunder, the howl of strong winds and the clink-clink-clink of hail (probably bouncing off your roof or car). Inclement summer weather is unavoidable in many areas of the country, and people are often left with a sinking feeling as they are forced to listen to their homes and automobiles weather a severe storm. If you’ve ever experienced this, your first thoughts were probably about the deductibles on your homeowners and auto insurance policies.
Have you ever been caught in the rain without an umbrella? As your clothes got soaked and your shoes filled with water, you probably thought with frustration, “Why didn’t I have my umbrella today?” Sometimes it’s easy to plan for life’s unexpected storms – like keeping a small umbrella in your purse or briefcase. That’s why we encourage you to consider a personal umbrella policy. It might keep you from asking a similar question if you’re ever faced with large personal insurance claim.
Have you ever considered renting your home, apartment or secondary property for some extra income? Homeowners around the globe are using online outlets such as Airbnb, VRBO and HomeAway to rent out their properties for daily, weekly and monthly fees. These companies cater to owners who may be away for extended periods of time or those who would like to cash in on major events coming to their cities when hotels are at full capacity and visitors are seeking alternative lodging options. For people with desirable ZIP codes, this can become a nice revenue stream. However, before handing your keys over to a third party proprietor, there are several important issues to consider to help ensure that you and your property are protected.
You know what they say about an ounce of prevention. When it comes to securing your home and personal property, you will never regret preparing for the unexpected. As winter quickly approaches, I’ve outlined some general liability and property tips to help keep you off thin ice.