HOME INSURANCE COVERAGE AND PAYOUT
Home insurance coverage
Home insurance policy will cover damages or replacements related to a variety of disasters and unexpected issues as stipulated in your policy. It will cover damage to the outside and inside of your house due to disaster as well as damage to personal belongings.
Home insurance will also cover medical expenses of a visitor who is injured as the result of an accident at your home. Depending on the context of the policy, it may also cover damages to vehicles while on your property.
Home Insurance Payouts
There are three types of home insurance payouts related to the payment upon a claim that you would receive.
Actual cash value coverage: this involves deducting the depreciation of the items subject to payout to know their current value.
If your home or its content are damaged and you are making a claim, the insurance company will pay you based on the current worth of your item and not the original price you listed in your policy.
Replacement cost coverage: this involves the cash value of your home or belongings without deducting any depreciation. Therefore, your payout will be the original value without any effect from depreciation.
Guaranteed replacement cost: this involves payment based on the actual cost of your home or belongings, even if it is more than you originally paid. This payment can also exceed your policy limit if the cost to repair or rebuild your home is higher than your limit.
Are you considering getting a home insurance policy? Contact us for consultation on how to obtain the best home insurance policy.
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