Market value is the price you pay for your home. Replacement cost is the price or cost to rebuild your home in the same spot, same size and same quality of construction, at today’s prices.
Unlike your home’s replacement value, its market value is influenced by factors beyond the materials and labor cost of repairs or reconstruction, such as proximity to good school, local crime statistics and available of similar home.
Unfortunately your homeowner’s policy does not cover flood, rising water or wind driven rain. Flood coverage can be purchased on a separate policy and sometimes is required by the mortgage company. Earthquake coverage is not covered on a standard Tyler, Texas, home insurance policy. Some insurance companies offer an endorsement for this coverage.
Yes, they would be covered by your auto insurance as long as they have a valid driver’s license and you have given them permission to borrow the vehicle.
It varies from company to company and can affect your insurance premiums for 3 to 5 years.
You do not need to add your child to your auto policy until they are fully licensed to drive on their own.
An umbrella policy provides additional liability coverage over and above what a home, auto, watercraft, ATV or golf cart policy can provide in the case of a claim. This policy protects you from having your home, savings and other assets depleted.
Most commercial property policies contain a coinsurance clause. The basic principle behind coinsurance is to make sure that the insured is insuring their property to an adequate value. If the insured carries an inadequate amount of insurance, they will be required to bear a portion of the loss themselves.
Each coinsurance clause contains a level that is considered adequate by the insurance company and can be stated in a percentage. 80% is common.
The reason insurance companies require adequate values is to ensure there is enough premium dollars to cover a loss. If an insured only covered a portion of their property, and they had a loss that was within the policy limit, the insurance company would not have collected enough premium to cover the potential loss. Normally, a total loss is rare so it is tempting for an insured to insure only to the amount they feel may be affected by a loss.
(Actual Amount of Insurance/Required Amount of Insurance) x Amount of Loss = Amount Insurance Company Will Pay
If you had a building valued at $100,000 with contents valued at $150,000. The total insurable value is $250,000. Under an 80% coinsurance clause, an insured would be expected to insure to 80% of the value or $200,000.
($150,000/$200,000) x $50,000 = $37,500 (less deductible)
The insurance company will only pay $37,500 leaving the insured to cover the remaining $12,500.
($200,000/$200,000) x $50,000 = $50,000 (less deductible)
The insured would get a full recovery under his insurance policy.
At one time, you could apply for health insurance whenever you needed it. You had to go through underwriting, and a pre-existing condition could keep you from being accepted. Alternatively, you could be charged more or have that condition excluded. All of this changed with the Affordable Care Act. The ACA requires insurance companies to provide coverage regardless of health status. Now you can only purchase insurance during an annual Open Enrollment period—November 1 through December 15 (for individuals) unless you qualify for a Special Enrollment Period.
A time outside the yearly Open Enrollment Period when you can sign up for health insurance. This time can be triggered by:
In the past 60 days, any of the following occurred:
Changes in income:
Changes in status:
Term life insurance:This is insurance you buy to cover a specific term, such as 10 or 20 years. These policies do not accumulate cash value. Premiums tend to be lower because of the likelihood that you will outlive the policy. When the policy expires, you must buy another term and pay higher premiums if you still wish to have life insurance.
Whole life insurance:This is insurance you buy for the length of your life. Unlike term insurance, whole life policies don’t expire. The policy will stay in effect until you die or until it is cancelled. The initial cost of premiums is higher than it is with term insurance because of the length of the policy. However, part of the premiums you pay builds up into cash value, which you can use later in life. With whole life insurance, the policy you buy at age 40 remains with you. Whole life insurance is often referred to as “permanent” insurance.