Homeowners's Values
Pricing has been a major factor in insurance spending in recent years. We are all constantly bombarded with ads. Insurance companies are trying to sell us on price alone. "We can save you hundreds of dollars by making one call". We've all seen these advertisements, but what are they saying? They may be saying that price is more important than the actual coverage. Ask yourself this question, "Which is more important, coverage or price?"
Basically, buying an insurance policy for your home, auto, business or anything for that matter, is purchasing protection. This protects you and the assets you may have accumulated in the past or might acquire in the future. Protecting your assets and future income is essential. Buying an inadequate insurance policy is much like buying a bullet proof vest with holes in it. It may or may not do the job and once you find that it doesn't do the job, it's too late.
When the price of a homeowners policy seems too good to be true, there may be missing coverages. Missing coverages include mold coverage, sewer back up, or the upgrading of internal options such as cash, jewelry, etc. Or one important coverage is the dwelling value, where nationally 2/3 of people are underinsured. One $5000 covered claim for one of these coverage options would offset a $200 savings for 25 years!
Many peoples' rationale might be that with the homes now depreciated for a lower resale value in today's market, it would make sense to insure it for less. Insurance is based on the replacement cost, which is the cost to rebuild the home. This number is very different and most generally higher.
There are three types of values on homes. First, there is the assessed value that that the Arizona State Treasurer uses to decide the amount of property tax that you are going to be billed. Second, is the market value that your home would sell for in today's economy. With the high amount of short sales in Arizona this value is extremely low.
The third value is the insurance replacement cost. This value calculated based on the cost of the materials and labor to rebuild your home from the ground up. The first two evaluations have no bearing on the third. Currently the price to rebuild is $140 per square foot. Additionally, rebuilding a home on an individual basis is generally higher than rebuilding a home in a tract development.
It's our job to make sure that you have the coverage you need. If you choose to decrease the coverage, we can explain what you are giving up. We continue to look for the most competitive pricing , but as always our goal is make sure that you have the best coverage.
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took his parents' car without consent. The boy was told by his parents that he was not allowed to take the car unless he was going to specific places such as work or school. He decided that he could get around the disciplinary action, and went out with his friends.
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When you call our office to make a car change, an AnCap employee, can rate for the change. We can take the time to run a number of rates with different carriers if neccessary. Some carriers charge a fee for canceling a policy prior to the renewal date, so we must take that into consideration when rating you with other companies. We often have to get very creative and "think outside the box" in order to offer you choices. The rating process can sometimes take longer than you expected. So, if we don't call you back right away, it doesn't mean we forgot about you. It just means we are working that much harder.
