As a homeowner in Colorado, it is essential to be prepared for storm season, which can bring with it weather conditions such as severe hail and/or wind. One critical step in preparing for storm season is ensuring that you have the right insurance policy in place to protect your property and assets.
Here are five critical questions to ask your insurance agent:
01. What types of storm damage are covered under my policy?
The first question to ask your insurance agent is what types of storm damage are covered under your policy. Not all policies are created equal, and some may not cover all types of storm damage. Be sure to review your policy carefully and ask your agent to explain any terms or conditions that you do not understand.
02. Do I have an ACV policy, or an RCV policy?
The second question to ask your insurance agent is whether you have ACV coverage, or RCV coverage on your policy. You want to make sure you have RCV coverage, as ACV coverage could cost you additional out of pocket costs in addition to your deductible. Replacement cost value (RCV) coverage is coverage that covers any storm damaged items at 100 percent of the current market rate, with no deduction for how old an item is. Your only out of pocket will be your deductible, and in exchange for that deductible, the insurance company will pay for like kind and quality repairs or replacement of any storm damaged items. Actual cash value (ACV) coverage is coverage that only covers you for the cost to repair or replace an item for the diminished value of the item with age or condition applied. That leaves homeowners to pay a significant of out of pocket cost to restore their homes after a storm.
03. What is my deductible for a wind/hail claim?
The third question to ask your insurance agent is what your deductible is for wind and hail damage. Your deductible is the amount that you will have to pay out of pocket before your insurance coverage kicks in. Make sure you know what your deductible is so that you can plan accordingly and budget for that deductible in case you are affected by hail or wind this year.
04. Are there any exclusions or limitations in my policy that I should be aware of?
The fourth question to ask your insurance agent is whether there are any exclusions or limitations in your policy that you should be aware of. For example, your policy may exclude coverage for certain types of storm damage or may have limits on the amount of coverage available for specific types of property.
05. Do I have any discounts or additional coverage options available?
The fifth question to ask your insurance agent is whether you have any discounts or additional coverage options available. Many insurance companies offer discounts for homeowners who take certain precautions, such as upgrading their roof to Class 4 shingle.
Preparing for storm season in Colorado means ensuring that you have the right insurance policy in place to protect your property. By asking your insurance agent these five questions, you can be sure that you are adequately covered and prepared for any storm that may come your way.
