Great Rates on Homeowners Insurance in Crowley Are One Click or Call Away!
Call us at 337-824-4455 to speak with one of our representatives or you can use our online quote system by clicking on Crowley homeowners insurance.
In a previous article we discussed the importance of paying close attention to the type of policy you buy.
In our state there are 9 different types of Louisiana homeowners insurance policies including:
- The Basic Form
- The Broad Form
- The Special Form
- The Tenants Broad Form (renters Insurance)
- The Tenants Broad Form (sometimes called an HO5)
- Special Condominium Form
- Dwelling Fire for Landlords (3 forms for landlords, basic, broad, and special)
What if you buy the wrong coverage form? This can lead to significant expenses out of your pocket at the worst possible time.
Make sure to speak with the well versed agents at Jeff Davis Insurance with any questions you may have by calling 337-824-4455.
Crowley Louisiana Home Insurance – Fire Coverage.
In our previous article we discussed the basic policy form of homeowners insurance in Crowley.
In what ways can the Basic Form protect you from various perils?
Let’s look at an example.
Marcy recently moved into a new starter home. It’s just large enough for her and her pet dog, Finn.
Needing to keep her expenses low, Marcy elects to purchases the Basic Home Insurance Form despite objections from various agents in which Marcy requested quotes.
After getting settled into her new home Marcy decides to have a housewarming party.
She invites quite a few friends over and they have a backyard barbecue. Late into the night things have settled down. Marcy and her friends decide to light a bonfire and relax near the flames.
What she doesn’t realize is that her bonfire and barbecue are too close to the house. Residual heat from the grill begins to melt and warp the siding on her house and flecks from the fire are drifting to her roof.
Soon there’s smoke coming from her roof and the side of her house. She calls the fire department and they’re able to put the fire out without it spreading too far.
Marcy submits a claim to her insurance, and because her basic policy covers fire damage that is not intentionally set, the damage is covered, however there is a limitation with the Basic Home Form Marcy is about to learn about.
The Basic Form does not settle losses on a replacement cost basis; it settles such claims on an actual cash value basis.
What is the difference between replacement cost and actual cash value loss settlements?
Actual cash value loss settlements include depreciation into the amount paid for the claim.
In Marcy’s case because she purchased the Basic Form her loss settlement was reduced by $4,987 for depreciation on the $21,782 claim.
Marcy naturally regretted her decision to purchase only basic homeowners coverage when she was forced to pay nearly $5,000 out of pocket to repair the damage caused by the fire.
Crowley Louisiana Homeowners Insurance – Pay Close Attention To Your Coverage Form.
Marcy learned a financial lesson the hard way as she did not take the time to fully understand the difference between replacement cost and actual cash value loss settlements.
This was despite the efforts of several agents she requested quotes from warning her not to buy the Basic Home Form.
What policy form did you buy?
The licensed agents of Jeff Davis Insurance would be happy to help compare to make sure you did not buy the wrong coverage form for your needs.
Call us today at 337-824-4455 or use our online quote system by clicking on Crowley homeowners insurance.