How Do You Compare Property Insurance Quotes?
While it seems easy enough to get a property insurance quote, don’t let the premium alone be your determining factor on which property policy to choose.. If you only compare price, you’re shortchanging yourself. Here are a few things to consider when shopping for and comparing property insurance coverages. Look at the valuation clause. The valuation clause is the basis for how the claims adjuster determines the amount of the claim. The two most frequently used valuations are actual cash value and replacement cost. Actual cash value is the replacement cost of the property less depreciation. Replacement cost, on the other hand, is the actual cost to repair or replace the property (no deduction for depreciation). Therefore, a property policy written on an actual cash value basis will make the policy holder whole after a loss if they have to come out of pocket for the deprecation value. Review the deductibles. It goes without saying that there is an inverse relationship between the size of
