American Eagle Insurance Blog
You may be under the impression that your home insurance policy covers every structure of your home, but that’s not always the case. When applying for a home plan you need to have a definite idea on how much home insurance coverage you have in case of disasters.
Know Your Policy’s Limits
There are three types of coverage limits: Actual Cash Value (ACV), Replacement Cost Value (RCV), and Extended Replacement Cost (ERC) / Guaranteed Replacement Cost (GRC). The ACV is how much the market value of your house without any devaluation. Rebuilding your home with new materials won’t be possibly covered by ACV.
RCV is the cost of value to fix your house at its current amount for the materials and labor. While ERC/GRC is just RCV, but the insurance company guarantees that they will pay a certain percentage above what normal policy limits to fix your home. Despite it being the expensive option, this would greatly benefit those who are always affected by natural disasters, like wildfire- and helps you to avoid paying tens of thousands of dollars out of pocket to rebuild your house
Is it Home or Hazard Insurance?
A lot of people does not understand the difference between the two, and mistakenly switch them or think that they are the same. You must choose a policy that would provide you great benefits.
Standard home insurance includes hazard coverage, as well as liability and property damage. This kind of coverage will give you an advantage if your home and all of your possessions get destroyed, or if there is someone who got injured within your property and files a lawsuit against you. Though, there is the HO-1 policy that only offers hazard insurance that only ensures the structure of your home from the hazards named in your coverage.
Use the Best Company
Do not be afraid to look around for the best rates home insurance companies could offer you. You may want to consider some factors when comparing insurers to one another, like the affordability of their prices, if you are getting what you pay, if you experience having the best customer service, and the highest trusted satisfaction claims.
At American Eagle Insurance, we do our best in making sure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (225) 667-7377 or Click Here to request a free quote