Home Insurance Policies: Understanding Deductibles and Settlement Provisions

Many of us have received notifications from our insurance carriers that our policy deductibles have been modified. Understanding the policy deductibles and settlement provisions is critical. The following will give you a basic breakdown of what some insurance companies have implemented and how these changes can impact you at the time of a loss.

1. Percent Deductibles for Wind and Hail Losses – Percent deductibles are deductibles that can be applicable to your home insurance or business insurance property policy. Essentially, this provision makes the policy holder responsible for a set percentage that is determined by the coverage A limit (building limit).

For example, many home policies include a one percent deductible. In the event your coverage A limit is $250,000, you would be responsible for $2,500 of that claim.

Percent deductibles typically apply to to wind and hail losses only, but it is important to read your policy to understand how these apply.

2. Actual Cash Value for the Roof Settlement – This provision typically is added for homes that have an older roof. To determine the settlement on these, you would take the replacement cost of the roof and subtract out depreciation.

Be sure to evaluate your home insurance policies to understand what provisions they contain. For a no obligation review, give us a call at 216-965-0646 or email us at info@kellernational.com.

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