As one of the biggest, most expensive investments you have or will ever make, your home deserves love, care, and attention. However, there are certain circumstances out of your control that may result in it sustaining heavy damages or even losses.
This is where a District of Columbia homeowners insurance policy comes into play. With this, you can protect your beloved home and its contents in the event of damage/loss-causing accident or natural phenomena.
What’s happening in the D. C. insurance market
In yet another study from the NAIC with the goal of determining each state’s insurance-related key facts and market trends, it found that the District of Columbia has a total of 50 registered domestic insurance companies. With the licensed foreign insurers, this number goes up to 1,402.
D.C. policy holders: Their waiting time for insurance company settlements
When you file a claim for property damage/loss, you cannot expect your insurance company to settle with you right away. Your insurer first have to review your case, particularly how extensive and severe the problem is, before they can reimburse you. In most cases though, as United Policyholders cited, the length of time associated with repairing, rebuilding, or replacement is around a year and a half to two years.
Coverage categories in the event of a loss
Under the “Declarations” page of a homeowners insurance policy, you will find the basic coverage classifications. These include Coverage A, or Dwellings; Coverage B, or Other Structures; Coverage C, or Personal Property; and Coverage D, or Loss of Use/Additional Living Expenses.
The Additional Living Expenses coverage takes effect when you have to move out of your home due to an incident that rendered it unlivable until the completion of certain repairs. The settlement you’ll receive include coverage for renting out another property temporarily, as well as food, gas, and mileage.
How D. C. defines cash value, replacement cost and depreciation
As a regular home owner, you most likely will have difficulties in completely understanding this type of insurance. This doesn’t mean you shouldn’t arm yourself with basic knowledge. It pays to know even just the standards of the most common terminologies. This way, you can set realistic expectations when filing a claim.
One of the most important things you should have some sort of grasp of when it comes to claims is how your insurer calculates settlement amounts. There are three major variables used in the computation: the “Actual Cash Value,” which they arrive at by subtracting the “Depreciation Value” from the “Replacement Cost.” The difference, of the ACV, is the amount of money the insurance firm will spend to repair/rebuild/replace damaged or loss property.
The last thing you want is to spend high out-of-pocket expenses as a result of property damage/loss. You can prevent this by simply purchasing and maintaining the required District of Columbia homeowners insurance policy coverage.