In Pennsylvania, homeowner’s insurance is a vital part of protecting the consumer’s investment. The type of homeowner’s insurance chosen dictates what is covered and how much coverage is provided. A common mistake homeowners make is asking the wrong questions when buying a policy. Insurance Companies in Lancaster PA help these homeowners avoid these common mistakes.
True Replacement Value of the Property
The true replacement value of the property isn’t the remaining balance of the mortgage loan. It isn’t the current market value. The true replacement value is the total cost required to rebuild the property if it is destroyed completely. This value is based on estimates made by contractors who specialize in restoration and rebuilding damaged properties.
Exact Replacement Value of Personal Belongings
Homeowner’s policies factor out a certain value for all personal items in a collective. This leads to a financial loss for the homeowner. By receiving exact replacement value, the policy pays for the replacement of items individually. For example, if a television is destroyed, the policy pays for a new television that is the same model that was lost. If this model isn’t available, the policy pays for the most recent release by the manufacturer.
Adding a Rider for Expensive Items
Jewelry and artwork are among the most expensive items covered on a rider. The rider allows the homeowner to use an appraisal to identify the true value of the item. If it is lost, stolen, or damaged, the policy provides this value to the homeowner. Insurance Companies in Lancaster PA can help homeowners with these requirements.
Temporary Housing Funds
Temporary housing funds are calculated by the homeowner. They choose a policy based on the payout and duration of these funds. They are used when the homeowner cannot return to their home after damage is sustained.
In Pennsylvania, homeowners need to choose the best policies to cover their property. This requires them to start by asking the right questions about insurance policies. This information helps them determine what terms are most beneficial for them if their property is damaged. Homeowners who need to purchase insurance should contact Susquehanna Insurance Management Ltd today.
