Understanding the entirety of insurance can be a tall dream, not to even mention the little details. That’s why we’ll lessen the job of your insurance advisor by discussing a couple of important things to know about your insurance policy that are regarded as the grey areas.
We will not be talking about 1346 when the first insurance policy was signed or Steven Spielberg’s life insurance policy worth $1.2 billion. Of course, no harm in knowing these tidbits, but we’ll focus on insurance intricacies as it concerns you as a policyholder.
This piece has two goals; to fill a few knowledge gap and to bring you facts that can keep you stress-free now and in the future when it comes to insurance.
It’s not only your mortgage or loans that a poor credit score affects; you may cough out more for your insurance also. According to My FICO, a credit score is one of the factors considered by insurers; about 95% and 85% of car and home insurers respectively rely on credit score where permitted.
Insurers believe that you are less likely to file insurance claims if you can manage your money excellently. By working around your poor credit score, you are likely to save yourself an average of $1,400 annually. Take a few minutes to work on your credit score and fix any issue, it will be worth your time.
In the words of Investopedia, dog-bite liability is a multi-million dollar problem, and they are spot on. According to the Centre for Disease Control, about 4.7 million dog bites are recorded annually, and 800,000 of these bites require medical attention. For every 73 Americans, at least one is likely to be bitten by a dog.
Despite the pandemic, dog bites related liability claims stood at $853.7 million in 2020.
That’s why homeowners insurers often decline to provide liability for certain dogs like American Pitbull terriers, Akitas, Alaskan malamutes, and mastiffs. These dogs are at the top of the list due to their temperaments and aggressive histories. To keep these breeds, you will have to pay extra for your homeowners’ insurance policy.
Let’s start by stating that the longer the waiting time for filing an insurance claim, the harder it’ll be defending it. This is especially true for commercial policyholders. When a claim is delayed, you are giving room for suspicions and loss of evidence. The insurers will have to turn around every stone to be sure that the damage is from the covered accident or something else.
Claims are best filed when the event is still fresh. While the statute of limitation might permit you for as long as ten years (depending on the state) to file a claim, nothing should stop you from doing it immediately if you can.
In any commercial property policy, you are under obligation to call the police whenever a law is broken; when breaking and entry has been established, you MUST inform the police even before filing any claim.
You will be making things quite easy for you and your insurer when you are armed with a police report. That’s the first proof available that the loss or accident indeed occurred. Depending on your state, you are expected to inform the police whenever an accident occurs.
You are not wrong for disagreeing with the adjusters’ valuation of your loss. There are different ways an amount of loss is calculated by the insurer. In a commercial property policy, the loss value is determined by its value or replacement cost.
Never assume the adjuster cannot be wrong; seek professional opinion on the cost of loss. Repair and replacement costs will always vary from place to place. That’s why you should reach out to your agent once you understand the adjuster’s value is not in tandem with reality.
These are the things about your insurance policy. For more information and inquiry, reach out to us at Tillman Insurance Advisors, our experts are always ready to address your concerns.