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Understanding Your Options: Navigating insurance

Written by Jeff  |  Published on November 15, 2015

Missouri weather has a tendency to be unpredictable. From the heat and rain during the summer to snow and ice throughout the winter months–your home’s exterior is challenged continuously year round. Due to these challenges, it is important to not only put your trust in a reliable insurance company, but to also find a policy that will protect your family and investment.

How to Navigate Home Owners Insurance

It is important to research differences in policies when you are navigating insurance options and the different types of policies offered. When you purchase Homeowners Insurance, you have two options: an Actual Cash Value policy or a Replacement Cost Value policy. When you need to make a roofing claim, both of these policies have their own benefits and drawbacks in terms of coverage and cost. It is important to consider these differences prior to needing the assistance of your insurance company.

When filing a claim under an Actual Cash Value policy, you receive the cost of the roof minus its depreciation (and deductible). This means that if your roof originally cost $10,000, but depreciated by $4,000 between the time it was constructed to when the claim was filed, you would receive $6,000 from your insurance company to replace it. A clear drawback to this type of policy is the overall lower amount of coverage you receive from your insurer. Additionally, there is not a standardized equation to measure depreciation. This means that depreciation is generally contingent on what the adjuster and insurance company charge. On the other hand, a benefit of this policy is that your premiums may be lower because of the overall decrease in coverage.

In contrast, a Replacement Cost Value policy covers the entire cost of the replacement (minus your deductible). For the same $10,000 roof mentioned above; you would receive $10,000, rather than $6,000, when you file a claim. This policy provides complete coverage for costly repairs and makes the claims process easier for the homeowner and other parties involved. However, it is important to remember that with increased coverage comes possible higher policy premiums.

The decision on which of these two policies to use is determined by the homeowner’s personal requirements and needs. Much as you have a choice in the policy you want to cover your home, you also have a choice for which company rebuilds your home. At TrueSon Exteriors, our mission is to provide affordable and high quality exterior remodeling services to the residents of Central Missouri.

As life-long Missourians, we pride ourselves on serving our neighbors and community members with home improvements that will add enjoyment and value for years to come. To learn more about our services, experience, and team, contact us today.

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