by Michelle Ferris on Dec 08, 2015
You need enough insurance to cover the cost of rebuilding at current construction costs. Don't base your home rebuilding costs on the price you paid for the building. With costs of materials rising, ensuring your building is covered with the right limits is especially important.
If your building is involved in an accident, certain important factors must be taken into consideration. Getting home insurance for replacement cost will usually cover damage to the structure.
However, if there is a catastrophic event, demand for construction workers and materials can push home rebuilding costs above your home insurance policy limits, leaving you without enough money to cover the bill.
Demolition, Full rebuilds, Partial Rebuilds
Also, if your building has insurance for rebuilding, but not for demolition and only half of the building falls, you still need to pay for the demolition out-of-pocket.
In a case where part of the building falls but can still be rebuilt, it is important to note that repairing and rebuilding parts of buildings can often be just as or more expensive than rebuilding the entire building from the bottom up. If situations like these are not well prepared for, they can leave your finances in shambles.
Law & Ordinance
Is your building older? Is it up to current construction codes? If it’s older and needs to be rebuilt to code, then you will end up paying much more for the rebuild than you expected, as the cost of updating the construction as well as materials will be much higher. It would be wise to ensure that you have the proper insurance limits as well as “Law & Ordinance” coverage, if applicable.
Improvements & Renovations
Have you remodeled or made improvements? Be sure to let us know about them! If something happens to them and it hasn’t been properly reported in your policy, your claim can be denied. Additionally, if a claim arises from these unreported changes and causes further damage to the rest of your property, a claim can be denied because the cause of the accident was not listed. Help us ensure your claims get paid and report changes to your premises.
For businesses, it’s a little different. If you lease, are you clear on whether you need to purchase the insurance for the building or not? It should be stated in the lease agreement, and is worthy of a double-check.
Please contact PLC Insurance today to make sure your limits are where they need to be to protect yourself and your assets.
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We have a customer, Al S. from Bothell, who went through a few different claims issues...
February 13, 2012
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