Review your insurance policy. So many people ask me what insurance should I have? While that is a great question, the more important question is what should I have IN my home owners policy?
I like to do so in January right after new years when I do my smoke detector batteries. It is possible for some policies to change without you knowing. You may receive an email in your junk box that says your roof has reached 15 years old and you policy is automatically moving to an ACV policy and you don’t even know it.
Items you need to review, #1, make sure you have an RCV policy. The 2 most common types are RCV (Replacement Cost Value) and ACV (Actual Cost Value). If you only want to pay your deductible and nothing more you need RCV. 20% of people have ACV and they don’t even know it.
#2. Deductible, sounds silly but you would be surprised how many homeowners I come across that believe they have a $1000 deductible to find out they have a percentage which is usually really high. Again the result is being under insured.
#3. Matching Endorsement, This can mean the difference between authorizing a small repair, most likely underneath your deductible, or a full replacement .
If your home is older than 5 years make sure you have a matching endorsement on your policy.
If your home is older than say 30 years make sure you have a code enforcement endorsement on your policy. This is important and could mean the difference of installing all new decking, ventilation and flashings on your new roof system.
If you don’t know what some of these insurance terms are even more reason to review your insurance policy with your local agent. Most people only ask after they have filed a claim. Do let this be you.
