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Property Insurance is NOT All the Same


It’s time for your insurance renewal and you are thinking about getting some competitive quotes on your property insurance. It’s good to consider options, but property insurance can have significant differences between competing carriers – much more so than other lines such as workers compensation where coverage terms are more standard. When comparing competing property coverage quotes, it’s good to ask your agent for explanations, but ultimately it’s your responsibility to read your policies. There are many differences between property coverage terms and here are some of the more significant ones for you to consider:

– Coinsurance Requirements are often used to reduce coverage if it determined that your property is undervalued on your policy.
– Ordinance or Law provisions vary widely between insurance companies. Such provisions can increase your coverage substantially if the cost to rebuild your property is increased due to more stringent building codes after a loss.
– Coverage for damaged foundations is often overlooked and many carriers offer very small limits, sometimes nothing at all.
– Actual Cash Value coverage generally provides reduced coverage due to age and depreciation. The reduction in coverage versus Replacement Cost can often be substantial.
– Newly Acquired Properties are sometime automatically covered even before you report the properties to your insurance company. Terms and/or limits of coverage for newly acquired properties vary significantly from carrier to carrier. This can be really important for a healthy, growing business.

These are just a few areas – there are many more. Be sure to read your policy and ask questions!

Scott Reynolds

About Scott Reynolds

Scott Reynolds is the President of Member Insurance Ltd. and CEO of Member Insurance Agency, Inc. Scott joined Member Insurance and was elected to the MIL Board of Directors in 2011. He is responsible for the overall operations of Member Insurance Limited and Member Insurance Agency. [Full Bio]