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Better Rates on Homeowners Insurance in Lake Charles Louisiana Are One Call Away!
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This Is One Mistake You Should Avoid When Shopping for Homeowners Insurance in Lake Charles!
In a previous article we discussed the importance of insuring our homes properly. Steve and Jodie Harrison purchased a new home and only bought enough insurance to cover what they paid for the home.
At first glance this seems logical. But it was a mistake that cost Steve and Jodie $12,000 out-of-pocket when a fire damaged their home.
When you buy a new Lake Charles homeowners insurance policy make sure you purchase enough coverage to rebuild your home exactly as it was prior to the loss based on current labor, current material costs, and local building and ordinance laws that may have been changed since your home was built.
Never insure your home for market value unless you want to be penalized by the insurance company!
The Homeowners Insurance Penalty You Need to Avoid.
Please note the contractual language of a typical Lake Charles Homeowners Insurance Policy:
Buildings covered under Coverage A or B at replacement cost without deduction for depreciation, subject to the following:
a. If, at the time of loss, the amount of insurance in this policy on the damaged building is 80% or more of the full replacement cost of the building immediately before the loss, we will pay the cost to repair or replace, after application of any deductible and without deduction for depreciation, but not more than the least of the following amounts:
(1) The limit of liability under this policy that applies to the building;
(2) The replacement cost of that part of the building damaged with material of like kind and quality and for like use; or
(3) The necessary amount actually spent to repair or replace the damaged building.
So to summarize if you purchase at least 80% of what you should’ve purchased to rebuild your home the insurance company will settle your claim on a replacement cost basis, not actual cash value.
Losses settled on an actual cash value may leave policyholders on the hook to pay significant amounts of money out-of-pocket!
In our next article we will discuss why it’s important to review your coverage so you do not incur a significant penalty in the event your insurance amount falls below the 80% coverage rule by the typical company offering homeowners insurance in Lake Charles Louisiana.
Call Jeff Davis Insurance Today When You Need Lake Charles Homeowners Insurance!
You can reach our licensed agents by calling 337-824-4455 during normal business hours. (8:30 A.M. – 4:30 P.M.) Or use our online rate quote system and you click on:Car Insurance Lake Charles Lahomeowners insurance in Lake Charles LouisianaHomeowners Insurance Lake CharlesHomeowners Insurance Lake Charles LaHomeowners Insurance Lake Charles LouisianaLake Charles homeowners insuranceLake Charles homeowners insurance policy