“Homeowner’s Insurance Policy” information that will give you $50 of value/information

 

We put together a list of 5 insurance policy items to check and have on your policy! If you have 15 to 30 minutes to review your policy please do so.  If you have difficulty finding them ask your agent or contact a local public adjuster for a review! WE HIGHLY RECOMMEND THIS, because these items could provide you upward to $500 to $100,000 pending an insurance claim. In 2017, 1 endorsement netted a client $33,000 (Had Law & Ordinance Clause) and the lack of knowing their policy also lost a client $27,000 (Had an ACV Policy). So it is critical to consider.

These items are specifically to ensure proper protection for your homes exterior products from common Midwest weather patterns! This week alone in Illinois over 30 towns were hit with hail and Crown Point, Indiana received pea-size hail. As, this Indian summer continues it’s critical to be properly protected & insured.

1. Law & Ordinance endorsement

This is extremely valuable if you live in an older subdivision! Many homes throughout northwest Indiana and the south suburbs of Illinois were built-in 1960’s to 70’s, which means many building practices are outdated. A lot of municipalities and building departments abide by 2009/13 residential building codes. It’s not rocket science to understand that 60’s version of framing is not equivalent for today’s standards. If you don’t have this endorsement, YOU WILL BE RESPONSIBLE FOR THE COST. A reputable contractor will not reinstall a product back to its original condition, because they could face fines from the village or worst lawsuits.

 

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Vapor Shield – is required by many villages/townships = $$$ for you

 

2. RCV Policy (Replacement Cost)

Pay the extra $$$ on your monthly premium. The difference of $15 to $45 dollars a month for your premium to receive the full amount of recovery IS WORTH IT. The average roof in 2018 dollars was $11,000, which equates to 733 payments of $15 (48 years of premium). So what is a RCV policy 1st?  A replacement cost value policy is a policy in which the insurance pays you the real-time cost and factors no depreciation into your cost. Whereas an ACV policy includes depreciation, for instance if your roof is 10 years old, the insurance companies will deduct 10 years from the value of the replacement cost = less $$$.

 

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This church had a RCV policy = receiving the full amount for replacement

 

3. Wind & Hail Endorsement

This is exactly what it says. Specifically covers wind & hail damage. Without this endorsement it’ll be VERY difficult to make a claim, because you’re not paying for the ability to claim wind & hail. We advise checking every year, because in storm heavy areas it’s known that clients have “mysteriously” had this endorsement left off.

4. Color matching Clause

EXTREMELY important for premium siding products and older homes. Every insurance provider is different in how they “describe” color matching peril. Example: if your home is 30 years old and only 1 side is damaged, it’ll be very difficult to find a color match for the 3 opposing sides. One company: Nationwide does have a color match clause and will indemnify for matching siding, which is fantastic for the homeowner. Be aware not all companies have this, but can assist in making your home aesthetically better looking without out-of-pocket expenses

5. A reputable insurance company

Do your research and align yourself with an organization with credible history of paying when their at fault. Ideas such as reading consumer reports, ask your neighbors about their experiences, and thoroughly research the internet. A company is only as good as their services!

We featured a recent blog pertaining to companies, in which we’ve worked with and have had good experiences on behalf of our clients! Check it out!

We hope this adds value to your life and possibly your wallet!

 

 

 

 

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THE TOP 3 INSURANCE COMPANIES (From our project managers experience)

After 30+ years we want to share a few storm restoration industry facts and the top 3 insurance companies we’ve enjoyed working with throughout Illinois, Indiana, and the midwest. Why does our opinion matter? We’d be doing you a disservice by not disclosing the GOOD INSURANCE COMPANIES we’ve dealt with. Keep in mind our experience is with Homeowners Policies and Commercial Property Polices, and we cannot provide insight for vehicles, etc.

If you don’t see your insurer on this list, please don’t cancel your current provider and  change your policyholder. However, you should annually request quotes to make sure you’re not getting fleeced in premiums! It’s also, important to understand your policy terms and the endorsements, because without the appropriate endorsements you might be in a compromising situation.

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Top 3 Insurance companies

  1. CHUBB Insurance: $$$   

    • This company is based out Warren Township, New Jersey and one of the largest publicly traded casualty insurance companies in the North America. So there publicly traded and fair? From our experience they’ve been very transparent and great communicators with the homeowner
    • CHUBB is not the cheapest homeowners policies but they offer a tremendous Homeowners Masterpiece package that provides the following and more:
      • Extended replacement cost: After damage that’s covered by your policy, Chubb pays to have your home repaired or rebuilt to original specs and up to modern building codes, even if the cost exceeds your policy limit. This coverage is capped in some states.
      • Cash settlement: If you opt not to rebuild after total loss damage, or to rebuild elsewhere, Chubb will provide cash up to the amount of your policy.
      • Home appraisal: Chubb’s appraisers visit your home, estimate replacement costs, recommend the amount of coverage you need and offer security and safety advice.
  2. AMICA MUTUAL INSURANCE: $$

    • Amica is based out of Lincoln, Rhode Island and  was voted the #1 auto insurance provider by NerdWallet.com (Money Blog).
    • We’ve dealt with AMICA throughout many south suburb communities in Illinois such as South Holland, Lansing, Crete, and Beecher.
    • In 2017 we worked 3 homeowner policies with AMICA and all 3 jobs were paid in full and the adjusters were easy to contact, timely in their adjustment, and most importantly were willing to discuss supplements/appropriate install.
  3. STATE FARM: $$

    • State Farm is probably the largest/most popular insurance provider that we have on our recommended list. We’ve dealt with a lot of State Farm insurance claims and have experienced the good/bad/ugly. We’ve noticed if the damage is evident and is covered within your policy they are a very easy organization to work with.
    • We’ve worked on many claims with State Farm, when the homeowners had no  covered damage (wear and tear), but believed the insurance company owes them a new roofing system. These appointments are often unknown to us when we arrive and we look like a deer in the headlights with the adjuster.

 

Companies we don’t recommend:

All State, Church Mutual, Travelers Insurance

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TIPS: Regardless of your Insurance Provider:

  1. Review your deductible YEARLY! We’ve encountered claims where the homeowner’s belief was not his reality. Due to the influx of recent storms, many providers are shifting to a % of your house value for an insurance claim.
  2. % of your house value deductible: Very much like the tax assessor or county government, insurance companies often OVERVALUE properties, which result in a larger deductible for you. Make sure your home is appropriately insured. There is nothing wrong with being over insured  BY CHOICE or within liability.
  3. See if you have the Ordinance & Law Endorsement on your insurance policy. There is absolute NO REASON to avoid this endorsement. If it raises your premiums $5 to $15 a month it’s by worth it. This endorsement covers everything that must be brought up to current building code or mandated per your town.
  4. Do you have an ACV policy or Replacement Cost policy? You can find this out by looking at your Insurance Declaration page. ACV policy will pay your the Cost of Replacement – Depreciation (Age of your systems) = ACV policy.  Replacement Cost will pay the per date cost of that item. Replacement Cost is superior to ACV. Actual Cost Value Polices are often found on distressed buildings.
  5. If you deal with a claim. Call a trusted contractor or public adjuster. Do not believe that the insurance adjuster is acting in your best interest. Many homeowners don’t understand depreciation. You will need a contractor to assist in the restoration process, so you might as well have them assist in building out estimates and reviewing the scope on your behalf.
  6. The mortgage company might be on the check. Before you get angry or bent out of shape, this makes complete sense. Almost 50% of the homes in the United States are on mortgage loans, which means you DO NOT own your home yet! The mortgage company is an endorser until they’re ensured the work will be completed per scope or by a reputable company. They are vested partners on the property until it’s paid in full.

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We consider ourselves the hybrid model of a licensed contractor. Our staff is experienced in both retail construction and storm restoration. It’s common, for many organizations to be one dimensional and there’s nothing wrong with either. Companies have their niches and that’s what makes our economy so great.  For instances, if the economy slows (recession) this tends to hinder discretionary spending = slow retail market and when there’s no damaging storms (hail, tornados, hurricanes, etc) = no storm industry.