What happens in the event of a claim if I have undervalued my household contents?

If you look at your home insurance policy you will see a page that lists all of the different risks covered under the policy. The declarations page will show the maximum amount your policy will pay for specific types of claims. In a standard home policy, your premium covers, among other things, liability claims, claims for damage to your dwelling, and claims for loss or damage to the contents inside of your home.

No insurance company is ever going to pay out more on a claim than your policy limits. If you suffer a loss that exceeds those limits, you are on the hook for any costs above those limits. While you should make sure your dwelling is fully insured, you should not ignore the importance of having the proper amount of content’s coverage.

While it is fairly easy to determine the amount you need to protect your dwelling, the amount you need to cover your possessions is not so readily apparent. Most people do not keep receipts for all of the things they purchase. Do you know how much your wardrobe would cost to replace? Undervalued contents of home furnishings and personal possessions can become a problem when you need to file a claim.

Most home policies assign a value of your contents equal to about half the value of your dwelling. If your house is insured for $100,000, your contents coverage may have a limit of $50,000. The insurance company does not require you to itemize every item in your house, but they may ask you to provide a list of certain high-priced items. If you have antiques or expensive jewelry, the standard coverage may not provide adequate insurance protection. You can buy additional insurance for your high-value items.

The bottom line is that you should carefully evaluate the value of all of your possessions inside the walls of your home. If you believe that they are worth substantially more than the upper limit of your contents coverage, you can buy more insurance so you are better protected against loss.

I’ve been the victim of auto insurance fraud? What should I do?

When you are the victim of auto insurance fraud in Plano, TX, it is not always easy to prove your innocence. Depending on the extent of injuries and damages that the individual who committed the fraud is claiming, the solutions that may be available can vary.

Ask Witnesses About the Situation

Auto insurance fraud often occurs when another driver purposely takes steps to make it look like you caused the accident, such as stopping quickly so that you rear-end the vehicle. It can be hard to prove that it was a staged event unless you have witnesses who are willing to give a statement to the police.

The same is true of a staged accident that involves a pedestrian. The pedestrian may time the supposed accident so that he or she is not actually injured. Witnesses from a different angle can see that the action was purposeful while you might not be able to tell from your position behind the wheel.

Allow Your Insurance Company to Handle the Situation

While it is important to stay up-to-date on the details of the situation, many insurers will determine that it is less costly to pay for the fraudulent claim rather than going to court and paying legal fees to prove that the individual is committing fraud.

In most cases, insurance companies will run an investigation into the situation if you suspect a fraud and inform the insurer about your suspicions.

It can be worrisome when someone stages an accident with the intention of making you pay for their injuries. Depending on the situation, you may or may not be able to prove that it is a scam. Contact us to talk to an agent to learn more about your options after being the victim of insurance fraud.

Are the contents of my shed and/or garage covered by my home insurance?

In most cases, your garage or shed and the contents will be covered by your insurance in Plano, TX. The amount of coverage is dependent on your exact policy and you should examine it carefully to understand your protection.

Building Protection

Most home insurance policies do provide protection for other buildings located on your property. The amount is normally based on a percentage of the value of your home. You should look for terms that include Other Structures when determining what applies to your policy.

The building value is often 10 percent of your home‘s value. For example, a $150,000 home would include $15,000 for Other Structures. If you happen to have a five-car garage and a low value home, you may need to add extra insurance protection. The perils you are protected against will be the same as your home, floods and earthquakes require separate insurance.

Contents Insurance

Your personal property that is stored in your shed or garage is covered under your personal property portion of your home insurance plan. This is also based on a percent amount and limitations apply. If you are storing a large fine art collection, you need to have extra insurance included on your policy.

However, when it comes to contents, your car, motorcycle or ATV should be covered under a vehicle policy. If you do have five vehicles stored, you need more than just basic insurance.

As your independent agent in Plano, we will be happy to help you understand all the details of your insurance policy. You can also use our service to compare quotes online if you do need extra coverage.

What limit of coverage should I purchase for my home?

Identifying the limit of coverage that is available on your home insurance policy can seem challenging. The only way to determine how much coverage you have on a particular policy is by looking at the plan and reading through the information. Every policy is different, so the limits that are set on your particular plan can vary.

Value of the Home

Often, insurers will offer policies that cover the total value of the house based on the market value or the estimated market value at the time that you purchase the property. This type of limitation means that you will have enough to pay for rebuilding or replacing the property in the case of a total loss.

The limit of coverage will usually have a set dollar amount and most plans will have a rounded figure. For example, if you bought a house for $198,000, then you might get a policy for $200,000.

Limits You Set

If you do not feel that the full price of the house is enough or if you think that it is too much for your needs, then home insurance policies may allow you to set a price based on the coverage that you want. Sometimes, you may also be asked to add coverage to your policy to address specific concerns, such as additional liability protection if you own a pool or have a pet dog.

Depending on the coverage that you select and the risks that you are protecting against, the actual limits on your policy may vary.

Protecting a property does not always mean that your insurance plan will have an obvious limit for the total coverage that is available. Every plan is different. Contact us to talk to an agent to learn more about your policy.