Scott Wilson News March 2006

Greetings!

Now that we're officially into spring, we want to wish everyone pleasant days ahead. With spring comes house cleaning and a perfect opportunity to review your home's needs. So here is some insight into Homeowners Insurance.

Homeowners Insurance

What You Need To Do Today 

More often than not people do not really look closely at their homeowner's insurance policy until after suffering some type of loss.  And, too often these folks decide to read the policy after their own insurance company has denied their insurance claim.

Please do yourself a favor and review your policy right away.  Don’t be caught in an unfortunate situation in the future that can be prevented today. 

First, look generally at the stated coverage for liability claims and your rights to compensation in case of your own loss. Liability claims means those situations that can arise where someone asks for monetary benefits for injuries or damages arising on your property.  You want your insurance policy to provide adequate coverage for these types of potential claims.   Also, you want to understand fully when your policy allows for compensation for your own losses such as those for losses caused by theft, fire or similar events.

Many people believe they are adequately insured for liability claims when they carry liability limits of $100,000 per person and $300,000 per occurrence.  Remember that medical bills can be extremely high for all but the most routine injury.  You really should go beyond the “minimum levels” of coverage, which I believe are the $100,000/$300,000 I just mentioned.

Another strong recommendation is to purchase "medical payments" coverage of at least $25,000 per person. This type of coverage is “No-Fault” coverage meaning that injured persons can quickly recover up to the $25,000 for medical bills they incur without engaging in a protracted course of proving that you are somehow at fault in causing their injuries.

Next, look at the amount and type of coverage you have for loss to your own property (i.e., the building and its contents).  Find out if your insurance carrier offers an automatic inflation adjustment feature that keeps your coverage in line with increasing costs over time.

Read the “Excusions” section of your policy as well as the section on what types of loss are covered.  Sometimes people are rightfully surprised at the type of losses and incidents that are excluded from coverage.  Often, losses suffered as a result of flooding are not covered by the policy unless you have negotiated and paid extra for such coverage.  Again, items that have unique value, such as artwork and jewelry need to be addressed specifically with your agent so that you will have adequate coverage for loss of these items.  Talk to your agent should you have questions and concerns about the limited nature of your coverage. 

A property loss can be valued according to its actual, current value or by its replacement cost.  There is a big difference usually between what an item costs to be replaced a number of years after its original purchase and its depreciated value (i.e., its current value).  For most people recovering insurance benefits equal to an item’s current value prevents them from being able to afford replacing the destroyed item of property.

The task of analyzing and obtaining the right type and amount of insurance coverage is not an easy one.  It is, however, a crucial task that should not be delayed.

Scott Wilson
Attorney At Law

Personal Injury
Real Estate Closings
Wills, Trusts and Estate Planning

2805 McRae Rd
Phone (804) 497-8395
FAX (804) 497-8397

http://www.scottwilsonlaw.com
Scott Wilson, sw@scottwilsonlaw.com

 

2805 McRae Rd.,

Suite 3A

Phone
(804) 497-8395

FAX
(804) 497-8397