Are You Fully Insured?
Updated: Feb 28
What does it mean to be fully insured? For us it means an insurance plan that fully covers your repairs or replacement while minimizing your out-of-pocket expense. With our insurance stress test we can eliminate the uncertainty that comes from an unexpected loss.
With homeowners insurance, our worst fear is facing an unexpected loss that isn't fully covered by insurance. Insurance after all is designed to cover claims against loss but what happens when the loss exceeds the limits on your policy? Take a damaged utility line for example. Most policies have some coverage for repairs but when the cost of repair is over $10,000, your policy may not fully cover the claim. In fact, since this type of coverage is not usually a standard peril, you'll most likely need to add this coverage and statistics show that most homeowners have no coverage at all.
So how does an insurance stress test work? We begin by assigning a value to your policy. Your insurance policy has your main coverages listed on the declaration pages however most policies have additional coverages or exclusions that could further enhance or limit the amount of insurance on your policy. We apply our algorithm against our most common claims for the area, adjust for variables in repair cost or replacement, cross reference the coverages and exclusions in your policy, and apply deductibles to find your out-of-pocket cost.
No one likes surprises when it comes to insurance so if you've ever wondered how a claim might impact your emergency fund give us a call to schedule your free insurance analysis and let's make sure there are no surprises.