Are there additional coverages I can add to my homeowners policy in order to increase my property protection?

A lot of people make the mistake of thinking that their homeowners insurance policy is all-inclusive. If your policy is the standard "named perils" policy, maybe you realize that your only covered for the named events that could damage your home, but even an "all hazards" policy has exclusions. Luckily, you have the option to purchase a number of additional coverages to help provide yourself with more property protection.

Perhaps the most common extra coverage for people to purchase is flood insurance. Floods are almost never covered by standard insurance and if you live in a flood plain, your loan company will most likely require you to purchase flood insurance. You can also purchase extra protection for things like earthquakes and hurricanes, but they’re probably not at the top of your worry list in Minnesota.

Sometimes your possessions dictate extra coverage. If you have a lot of expensive jewelry or collectibles, the value may exceed the limits on your homeowners insurance coverage. In that situation, you can purchase extra coverage that will cover the full value of your property. Similarly, if you have other expensive features that might not be covered by homeowners insurance, such as rare and expensive plants or separate structures on your property, you might want to add specific coverage for them.

If you live in Washington and you think you might need additional coverage on your homeowners insurance for property protection, you need to contact Pizano Insurance. We are your independent agent in Wayzata, Washington and our website allows you to easily compare quotes on home insurance, so you can always be sure that you’re getting the best deal.

In Albertville, Minnesota, should I insure my building’s structure for the market value or rebuilding cost?

Selecting the appropriate home insurance policy in Albertville, Minnesota can seem complicated. You may worry about the best type of policy and how much coverage is necessary for your home. Ultimately, the decision to obtain a policy for the market value or the rebuilding cost of the building structure depends on your personal preferences.

Rebuilding Cost

In general, the rebuilding cost of the structure is slightly less than the market value because the value of the property is usually calculated with the surrounding yard, land and any other structures on the property.

Obtaining a policy for the rebuilding cost may or may not be a smart decision. The reason is that it may be more limited when you have a total loss. You may not have enough coverage to pay for rebuilding the structure as well as your personal belongings or damages to other parts of your property.

Market Value

Even though the market value of a property is subject to change over time, it calculates your coverage based on the cost of replacing all of your property, including repairs to the land or other structures on the property.

The market value is usually slightly higher than the cost of rebuilding, but it may also result in a slightly higher premium. Depending on your current budget and plans, it may be appropriate to consider the policy after you no longer have potential complications.

Deciding to use the market value or the rebuilding cost to determine the appropriate homeowner’s policy is ultimately a personal choice. Contact Pizano Insurance to talk to an independent agent for more information about the differences between the policies and the complications that may arise when you select a particular type of policy.

Do I need to tell my insurer if I have major building work done, such as an extension in Wayzata, Minnesota?

If you are having major building improvements done for your home in Wayzata, Minnesota, you should let your insurance agent know. The best scenario involves speaking with your agent before you even begin to have work done. This allows the agent the time that may be required to research the potential increase in your property value.

Major Building Improvements and Your Home Insurance

Having additions or extensions added to your home will increase the value of your property. Your home may be insured for a replacement cost of $120,000. A major improvement can easily add another $20,000 or more to your home’s value. You need to increase your insurance to protect the investment you have made.

While the contractor you are using should have a license and insurance, you should talk to your independent agent to see if any additional coverage might be advisable. Contractors should carry insurance that protects you from liability from worker’s injuries and liens against the company. Their insurance should also cover any damages to your home will the work is being performed. For major renovations, a little extra insurance could be beneficial.

If you are completing the work yourself, additional coverage is recommended. You may have a large amount of money invested in the supplies and materials. You need to protect your investment before it becomes part of your home.

You should also consider that making minor improvements to your home will add up over time. If you are having $1,000 or so of work done each year, take the time to add up the total of these improvements over five years. You want to keep your insurance policy up-to-date with your home’s value.

When you work with Pizano Insurance for your home insurance needs in Wayzata, you only need to contact your independent agent. This saves you the time you would otherwise spend trying to reach your insurance company directly. You can contact us any time you need to get answers to your home insurance questions.

What is the difference between replacement cost and actual cash value of my property in Albertville, Minnesota?

When you buy insurance for your home in Albertville, Minnesota, you should make sure you understand what kind of coverage you have. If you have the wrong type of coverage and suffer damage or loss to your personal property, you may be in for a surprise when you file a claim with your home insurance policy.

Your homeowners policy will either provide you with replacement cost coverage or actual cash value (ACV) coverage. Replacement cost coverage is better coverage because it will pay for you to replace your lost/damaged property or item with an equivalent item made of similar materials and of similar quality. As an example, if you have a couch that you paid $1,000 for five years ago and it is destroyed in a fire, the insurance company will issue you a check for enough money o buy a new couch of similar quality. That is not the case if you have actual cash value coverage.

Actual cash value is defined as the replacement cost minus depreciation. With a few exceptions, most assets depreciate over time. Their condition can deteriorate or go out of style. Depreciation hits computers and electronics hard as new technology causes older items to rapidly lose value. If you have actual cash value coverage and file a claim, you will only receive the current market value, based on the age and condition of the item or items you lost.

Although you might pay a little higher premium for replacement cost coverage as opposed to actual cash value coverage, if you suffer a loss, you will be glad you had replacement cost coverage.

At Pizano Insurance you can talk to an independent agent and find out everything you need to know about insurance for your home. We can compare policies from multiple insurance companies and find you the best quote for the coverage you want and need for your home.