Check out this great video
Are you really fully covered? It's an interesting term, that is thrown out loosely throughout the insurance industry. From customers to agents and service representatives, using that Terminology can be misleading at times. In our opinion and experience no one is ever "fully covered." The liability portion or your policy covers bodily injury/property damage and uninsured/underinsured motorists. There are limits for those coverages, and if the damages exceed those limits, you could be responsible to pay the amount above the limit out of pocket.
With Comprehensive and Collision coverage, there are deductibles tied to those coverage limits and those deductibles come out of your pocket to get you vehicle repaired. So, paying out the deductible comes out of your pocket.
If you are involved in an accident caused by another party, then you should take the initiative to get their insurance information and file a claim with their company.
When I hear the term fully covered, I think or feel that term means everything is paid for. From just the few examples above and some of the statements made in the video, this is not the case. If you have questions about the coverage limits on your policy or would like to review your policy with a licensed agent, please contact the Bradley Insurance Group by clicking the button below.
Market value is the estimated price your home will sell for on the open market between a buy and a seller under conditions for a fair sale. Market value will include intangible factors that influence the price of your home such as its location, neighborhood, proximity to a good school district and commutability to work locations. These factors can increase or decrease the value of your home, but they should not impact how much it should cost to cover your home.
Replacement cost is what your insurance carrier estimates the cost will be to construct a building of like kind and quality at current construction prices. Replacement cost is driven by tangible factors such as square footage of the home, construction material, quality of finishes in the home, and many other factors. Certain markets can have a major impact on replacement cost such as building materials, labor, and fuel markets.
A big misconception in the insurance industry is that replacement cost and market value should be the same. These numbers can be close when economic conditions are stable, but these numbers can vary significantly during times of economic uncertainty like we have seen over the last couple of years. The rising costs of raw materials, fuel, and labor have driven replacement costs up reflecting in the major premium changes we have seen in recent years.
You should be checking your renewals every year to ensure your replacement cost on your home is accurate. You should also review your policies yearly with your agent to ensure everything is updated, correct, and you have the proper coverage to protect your assets. If you would like to set up a policy review with one of our licensed agents, click the button below.
The definition of insurance in short is to put you back to with "like kind and quality" that you had before the loss occurred. That's the definition and it's short and to the point, but as we know, insurance is anything but easy to understand and there is a lot of complex avenues within insurance.
Bradley Insurance Group, Inc.
11 N High St., Suite 101 Canal Winchester, Ohio 43110
phone: (614) 863-9300
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