Check out this great video
Are you really fully covered? It's an interesting term, that is thrown out loosly 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." There are limits on policies for bodily injury / property damage / uninsured-underinsured motorist coverage and if the damages exceed those limits, typically the customer is responsible for those amounts or they have to take action against the claimant if the were not at fault in the accident. With Comprehensive and Collision coverage there are deductibles tied to those coverages and those deductibles come out of your pocket to get you vehicle repaired. SO, paying out that deductible comes out of your pocket. 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. Which makes the term "fully-covered" an incorrect term in the insurance world. There could be intense discussions about this but at the same time whether it's right or wrong it should bring you to the point to check and see if you have the right coverage on your vehicles and if your liability limits need to be increased. You can never have too much coverage in today's time. sting about your business here.
n the insurance market there has been a huge discrepancy between what the house is insured for or should be insured for compared to the market value. Over the years, there has been a gap that closes or that is super far away on both of these values. In the video, I briefly talk about the difference in the two. People say that we "have" to use the market value, but why do we have to use the market value? What an appraiser / realtor says the house is worth or valued at doesn't dictate the insurance, just like I shouldn't dictate what the value of the house should be. I don't have that kind of knowledge or specialized knowledge of the real estate market but I do have an idea. I do have specialized knowledge in the insurance market for houses so I should stay in my "lane" on this. Each insurance carrier has their own system and formula to come up with the replacement cost of each property. They take information such as square footage, bathroom # and quality, kitchen quality and then a ton of other information and then that together will deem the replacement cost. The replacement cost is what it would cost to reconstruct the house if there is a total loss. These are good conversations to have because this helps people understand what these terms actually are and how they can effect you as a homeowner. If you are unsure if you have this coverage, the best advice would be to check with your agent or carrier right away. Don't hesitate, don't wait, check today! If you don't know what your house is insured for, please make sure that you reach out to your agent and find out today !
The definition of insurance in short is to put you back the way you were 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.