By Beth Kujan
Feel like reading your homeowners policy all of a sudden? Me too! Anything that dry could use some study questions to help prepare the mind. Here are a few:
1) Likely you are insured against the peril of Windstorm. What is your deductible?
2) How does your deductible for Windstorm differ from the peril of Hurricane? Note that in Morristown Sandy is expected to be a Tropical Storm. This is good.
3) Check for New Jersey definition of floodwaters; homeowner’s policies do not provide for troubles arising from surface waters. If you have a flood policy, check that for details.
4) Is your policy for Replacement Cost Value (RCV) or Actual Cost Value (ACV)? If you just built your home, then RCV = ACV. As time goes on, appliances and finishes depreciate and it starts to cost more to replace what you have than it’s actually worth right now. If you have an ACV policy, your premiums will be lower, but you’ll have to use your cash to make up the difference to replace what you had.
5) Your policy will state your duties after a loss. There are companies that can help you with those duties: remediation companies and public adjusters.
Stay safe. Stay smart.
