One of the biggest questions consumers have regarding homeowner's insurance revolves around the amount of insurance to place on their dwelling (home).When purchasing a house, the mortgage company requires the homeowner to obtain insurance prior to closing. Most consumers assume the amount of dwelling coverage will be equal to the amount they paid for their house. This is incorrect in some cases.
There are different methods to determine the value of a house. Market value is the price paid for your house. Replacement cost is the price or cost it will take to rebuild your house in the same spot, same size and same quality of construction, at today's costs. Insurance companies use the replacement cost valuation. These can be two completely different numbers.
Backup of sewer and drains...Will your homeowners insurance cover this? The backup of sewer and drains as well as the failure of a sump pump is excluded. The damage you sustain from either of these problems will not be covered and you'll be responsible to pay for the loss and the clean up. If you have a finished basement, or use your basement area for storage, you shouldn't go without this coverage endorsement.
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nice post!
ReplyDeleteI do agree that there are methods to know the market value of the house, and also insurance does not set on how much cost you paid to own the house. The market value of the house changes every year and it depends on its location. Insurance Palm Desert, explains well their terms with regard to insurance detail. Clients find it convenient also with their inquiries answered politely with the human resource management outsourcing team. It is very convenient that you can call them anytime or ask through E-mails or chat.
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