The Covid-19 pandemic has had a significant effect on the housing market. Home prices and homeownership rates have increased in many areas due to the shortage of homes for sale. Homeowners also face higher costs when rebuilding their homes following a casualty loss due to pandemic-related supply chain issues and labor shortages in the construction industry.
After a catastrophic event, it is important to know that homeowners’ insurance may provide some relief from these losses. Still, it is important to review your coverage limits before making decisions.
If you live in a condominium, there is a difference between what your insurance covers and the condo association’s insurance covers. The condo association may be responsible for the exterior of the building, common areas, and some fixtures inside your unit. You are responsible for the interior of your unit, appliances, and any improvements you make to the unit.
Homeowners have a choice of purchasing replacement cost or cash value insurance. Homeowner’s Replacement Cost Insurance pays the total insured amount to replace your home and its contents with materials similar in type and quality but not necessarily identical. Homeowner’s Cash Value Insurance only reimburses you for the actual cash value (the depreciated market price) of any loss minus any deductible. If you choose this option, it may be necessary to take out additional insurance coverage to protect yourself from catastrophic losses.
This blog article will discuss the eight measures you can take to make sure that your most important investment, your house, is adequately insured.
- Check your policy to find out if you have replacement cost coverage or cash value insurance.
- Review your policy limits. Most Homeowners’ policies limit how much they will reimburse you per incident. Make sure you know what these limits are before an event.
- Many people are using their homes in different ways while they self-quarantine. Consider how you are using your home now compared to how you used your home before the pandemic.
- Before your annual renewal date, you will want to do some comparison shopping to make sure you’re getting the best rate.
- Most insurance agencies offer relief programs to insurers in response to the pandemic. Relief may include flexible billing options or discounts.
- Make sure you inform your insurance carrier of any additions or renovations to your home so that those areas are covered.
- Discuss your home office and make sure all of your new office equipment is covered.
- Did you install a new security system lately? You may be entitled to a discount.
If you’re a good customer, your insurance company may be willing to work with you.
With the pandemic sweeping across the country, knowing how high homeowner’s insurance rates will climb isn’t easy. So contact Property Life Management today to get some guidance on your options for affordable home protection that can keep pace with changes in our economy, give us a call today; we are here to help.
Property Life Management
2465 Centreville Road
Suite J17-209
Herndon, VA 20171
(703) 737-0072
info@propertylifemanagement.com
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