Homeowner’s Policy

Charles Goodman Group: Professional Insurance Companies in Armonk NY

When natural disasters strike, homeowners take confidence in knowing that homeowners insurance will provide them with financial compensation for the damage done to their home. Unfortunately, some homeowners learn too late that the coverage they purchased was not adequate to cover the damage done to their home. An Armonk insurance agent is an invaluable source of information for homeowners who have questions about whether their coverage is sufficient or not.

When purchasing homeowners insurance, first take stock of what is inside of the home that needs coverage. Four basic aspects that should be covered include the structure of the home, personal belongings, liability and living expenses. A good policy will provide sufficient compensation to completely rebuild the home and replace everything that was damaged inside of it.

Replacement value insurance policies provide sufficient coverage to replace lost possessions as opposed to merely getting the fair market value or the cash value for them. Extended replacement value insurance covers 100 percent of the cost of the home, plus an additional percentage value that covers what it would cost to rebuild the home in the current market.

Homeowners should thoroughly understand their insurance policy and the claims process. They should ask questions like, will the entire claim be paid up front or will just a fraction be paid immediately? Will compensation be provided solely for the items that are replaced, or will it cover everything that was lost?

Some policies provide cash value for the items that were destroyed or lost immediately after the disaster took place, while others will withhold covering the replacement value of lost items until the replacement items have been purchased.

An agent from the Charles Goodman Group in Armonk NY would be happy to answer any question you have about insurance companies.

This provides the insurance company with receipts proving that the homeowner actually replaced the damaged items. Unfortunately, policies of this sort present a challenge to homeowners who have no cash saved up and are completely wiped out after a disaster.

Understanding the timetable for replacing lost or damaged items is an important part of filing a claim. Some policies require that a homeowner replace the items that were lost within a short period or they forfeit compensation. This can create a serious burden. Depending on the level of damage done, a homeowner may not have a mode of transportation to purchase new items, and it may be some time before they have a new residence where they can store the items that they have purchased.

Homeowners insurance is necessary for people who are concerned about protecting the value of their home. The more a homeowner understands about their insurance policy, the better prepared they will be when a disaster strikes.