Charles Goodman Group: Trusted Insurance Broker in Armonk NY
After a fire, vehicle accident or natural disaster, it can be tough to get back on your feet. This is especially true when your property is damaged to the point of no return. Although insurers may provide total loss compensation, the terms of your policy typically limit how much funding this amounts to. Ultimately, working closely with your Armonk insurance agent is critical to getting a fair deal.
When an insurance provider decides that a piece of property is a write off, it usually pays the owner a lump sum that approximates the market value of said item. With a totaled car, for instance, you will receive enough money to buy an identical vehicle once depreciation, age and prior condition have been taken into account. Payments may also be distributed to lien holders under certain circumstances.
Write-offs are generally declared by insurers who feel that the cost of replacement isn’t worth it; if your car’s repairs cost more than it did new, for instance, the insurer won’t want to pay for fixes. Insurers can also set value percentage thresholds above which damage is automatically classified as a write-off.
In some ways, total losses favor the policyholder; you might be able to replace an older item that was close to the end of its lifespan or get your hands on a new vehicle faster than you would if you had to wait for repairs.
An insurance agent from the Charles Goodman Group of Armonk NY would be happy to answer any question you have about property insurance or umbrella insurance.
In other instances, such as when a driver still owes money on a vehicle loan or a homeowner is still paying their mortgage, write offs can be less than ideal.
The way you plan your policy makes a difference in how write-offs work. For instance, consumers who owe money on the property being covered may wish to also add loan payoff or gap coverage. This form of coverage can help assuage the difference between a totaled piece of property’s value and the remainder of the loan amount.
Also, remember that insurance agent relationships can help people deal with total losses more effectively. For instance, the total loss value of a given property isn’t set in stone; most policies allow for disputes. You may, however, be asked to provide corroborating evidence in the form of official documentation, so it’s critical that you work with your insurance agent to identify approved vehicle inspectors and learn in advance what you’ll need to support any case you decide to make. Appraisals must follow specified procedures, so you should generally consult with an expert before soliciting one.