April 17, 2014

Video-How To Determine If You Are Under Or Over Insured On Your Home

By Loretta McNally, Heeran's Home Team, RE/MAX PLATINUM Realty

Today, we want to thank Adrian Enzastiga, with American Family, for joining us to discuss ways to determine if you have enough, or too much, insurance.   Adrian works with the Robert Whitesel Agency, Inc., an American Family Insurance company. 

Adrian has also served the Omaha community by being a family teacher at Boys Town for 10 years and worked with foster children and much more.

He reported that you have to review your home owner's policies in three ways. 

1    Look at the building or house.  There is a maximum total amount that will be paid for your dwelling coverage—replacement cost or actual cash value.  A certain percentage of this amount (10%) covers unattached buildings such as garages.  An American Family policy actually covers 120% of replacement value. 

2.     Take a look at your personal property.  You want to check the total personal property covered.  Specific coverage for certain items such as computer equipment or unscheduled jewelry is listed in the policy. 

3.      Review the amount of time and dollar amount that will be covered for insured to live elsewhere while the home is being built which is called Loss of Use.

4.     Review the coverage you have if someone is injured on your property.

Adrian also explained that purchase vs. replacement cost is calculated via a computer program based upon current costs to rebuild a home (if a total loss), so this is the way it is done if you have a home in Omaha, Nebraska or another state.  If the purchase price is significantly less than the replacement cost, an actual cash value policy can be purchased as the cost to rebuild the home is much higher to insure.  

It is also very important for Omaha homeowners to review their deductible vs. monthly premium.  Adrian addresses with homeowners what saves the owners the most money.  Adrian explained that truly this is up to the customer.  However, the customer should know that if they go with a higher deductible (ex. $2500), they will be responsible for the difference when there is damage.  For instance, if there is a hail storm – we do have those in Omaha – and there is damage to your roof upwards to $6000, you will be responsible for that first $2500.  You must weigh this deductible figure against the monthly savings received.  Whatever the deductible is, you will want to set this money aside you are ready.

Adrian recommended reviewing your policy every 2 years with your agent.  Replacement cost calculations often increase with inflation, and they additionally can change with the rate of inflation.  Also, any upgrades or additions to the home need to be considered.  The bottom line is to make sure you have the best coverage possible for you and your family can afford. 

Adrian further recommended calling your agent first whether you are or not going to file a claim.  Your agent will answer your questions to help you make that decision.  The agent can help the customer understand how a particular claim might affect their insurance going forward. 

Lastly, if you do need to file a claim and have repairs made, your insurance agent can give you suggestions on how to look for well qualified and licensed Omaha area contractors. 

Adrian was delightful to be with us today.  He is looking forward to helping families review their current insurance or set up a new policy if you are a first time homebuyer.  Just give Adrian a call today at 402-330-0119.

By: Heeran Workman, MBA, Realtor - REMAX PLATINUM Omaha NE

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