Insurance World

The homeowner policy has so many benefits and features. The online shopper can get confused in all the details when trying to compare policies. There are some basic benefits and there are a variety supplemental benefits and riders. The rates are calculated based on two different methods of claim settlement. The homeowner needs to understand these two methods in order to select the appropriate policy.

Two Types of Claim Settlement

1.Actual Cash Value – This type of claim settlement uses depreciation when determining the amount paid after a loss. For example: If a property has a current replacement value of $100,000 and has depreciated by 30% due to age and use, the actual cash value of the property would be $70,000. Actual cash value policies are usually written on older homes that depreciate.

2.Replacement Cost – This type of claim settlement does not use depreciation. Replacement cost is defined as the cost to replace with like kind and quality at today’s replacement cost without any depreciation. Replacement cost policies are generally purchased on newer homes.

The next thing to consider is how to determine the proper value of your home. Insurance companies use a calculator to find the appropriate amount of insurance. It will make your online experience a lot easier if you can have some of these details available.

1.Square Footage – Insurance companies always use square footage to calculate replacement cost. The square footage is available on your appraisal.

2.Finished Basement – This adds to the replacement cost value of your home. What percentage of your basement is finished?

3.Detached Structures – The homeowner policy has protection for other structures. The amount of protection is 10% of the dwelling amount. You may need more added to this 10% if you have some larger detached structures.

There are other things to consider like air conditioning, decks, and fireplaces. These all add into the final calculation. There are discounts for smoke detectors, fire and burglar alarm systems. Please view our recommended insurers for details.

When you’re sick, you go to a medical doctor. When you need to organize your finances, you go to a CPA. When you need someone to help you understand and purchase auto or homeowners’ insurance, you should go to a Chartered Property Casualty Underwriter, or CPCU.

Just as these other professionals work with you as partners, so too is a CPCU your professional insurance partner. CPCU is recognized as the premier professional designation of the property and casualty insurance industry. When you choose a CPCU, you can be sure that you are working with someone who has significant experience and can offer you guidance on all of your insurance decisions. A CPCU must also agree to an enforceable code of ethics and pledge to put your interests above his or her own.

Simply put, CPCUs are dedicated to helping consumers make better insurance decisions-and they’re highly qualified to do so. To earn the credential, CPCUs must pass undergraduate- and graduate-level courses covering such diverse subjects as insurance law, ethics, accounting and management. These demanding standards ensure that when you choose a CPCU for your insurance needs, you are choosing someone who not only has your best interests in mind, but has the background and knowledge to prove it.

Many CPCUs are also members of the CPCU Society, a professional association that provides CPCU members with opportunities for continuing education and professional development. These opportunities ensure that CPCUs stay on top of the latest issues in the industry and can pass that knowledge on to their customers.

The CPCU Society was founded in 1944 with a mission to meet the career development needs of a diverse group of professionals who have earned the CPCU designation, so that they may serve others in a competent and ethical manner. There are 26,000 CPCU Society members around the world that help others make sound insurance decisions.