Figley-Salz & Company Trusted Choice
Auto Insurance Real Estate



You know your home or commercial building is worth $200,000.  Yet you are only insuring it for $100,000 as Replacement Cost.  Why?  Well, because you like the premium for $100,000 worth of insurance much more than the premium to insure to value!

But here's what happens when you don't insure to value.  A major hailstorm rolls through (and we're right on the verge of storm season!) and totals your $50,000 roof.  You turn in a claim, and the insurance adjuster comes out to inspect the damage.  "Wait a minute," the adjuster tells you.  "Your building is worth $200,000, easy.  Yet you're only carrying half that amount.  So we're only paying 50% of your claim!"  That's right; you're only going to  receive half the amount it takes to replace that $50,000 roof (minus your deductible as well).  It's what's known as the coinsurance penalty.

And let's not even think of a catastrophic loss.  If a wedge tornado takes your building off its foundation, you're only receiving $100,000 to replace a $200,000 structure.  So it never pays to underinsure.  Insure to value!

Share |


No Comments


Post a Comment
Name
Required
E-Mail
Required (Not Displayed)
Comment
Required


All comments are moderated and stripped of HTML.
Submission Validation
Required
CAPTCHA
Change the CAPTCHA codeSpeak the CAPTCHA code
 
Enter the Validation Code from above.
NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive


View Mobile Version

Our Carriers



Figley-Salz & Company
Auto Insurance Homeowners Insurance Commercial Auto Workers Compensation Business Owners General Liability More Types of Insurance Like Us on Facebook Follow Us on Twitter Connect on LinkedIn Mobile Site Review Google Places IIAOK
Figley-Salz & Company | 1020 10th St | Woodward, OK 73801 | Phone: (580) 256-3391 Click to Search Powered by Insurance Website Builder