Last Updated on September 29, 2020 by Andrew Lee
Because your home is one of the biggest, most expensive investments you’ll ever make, it makes complete sense for you to keep it as safe and secure as possible. There are many factors that can result in it sustaining damages or you losing property, so you should prepare for the worst.
A lot of people opt to purchase and maintain a Connecticut homeowners insurance policy to protect their home and the valuables it contains. With an insured home, you can expect financial assistance from your insurer in the event of property damage or loss.
Average premiums for Connecticut homeowners and renters insurance
The National Association of Insurance Commissioners (NAIC) published a study reporting the average premiums homeowners insurance policy owners pay every year in the United States: $1,096.
Homeowners paid an average of $1,274 making it the 9th placer in the rankings
Renters, on the other hand, had a median expenditure of $200 placing the state in 14th place
The financial resource firm ValuePenguin also had its own research in this field. According to its experts, those who maintain this particular type of insurance protection pays a monthly average of $94.07.
All in all, the difference between CT’s annual insurance premium average and the national average is 1.16%.
Coverage categories in the event of a loss
Most of the standard insurance policies in Connecticut feature four key classifications. These include structural losses, known as Coverage A; coverage for other types of structural losses, called Coverage B; coverage for content, referred to as Coverage C; and coverage for the temporary loss of use of the home/Additional Living Expenses, namely: Coverage D.
Coverage D, or Additional Living Expenses, helps you cover costs you may incur in the event that your home sustains damage that renders it un-livable for a short period of time. The settlement includes coverage for temporary rent, gas, mileage, and food.
Key Facts and Market Trends in Connecticut: The NAIC released another report, this one providing pertinent facts on the State of Connecticut’s insurance-related key facts and market trends. According to the association, CO has 98 domestic insurance firms as of the year 2015. In total though, including the licensed foreign insurers, the count reaches 1,309.
How long insurance company settles in Connecticut
Carriers of homeowners insurance policy in Connecticut often ask how long they need to wait before their insurer settles with them after they have filed a claim. There are several factors that insurance companies need to take into consideration, one of the most critical of which is the size of the damage/loss. In most cases though, the waiting period can go anywhere from 18 to 24 months, as United Policyholders cited.
State rules of Connecticut on cash value, replacement cost, and depreciation
Even though homeowners insurance is quite complex, you should still have, at the very least, a basic understanding of it. Knowing more about the commonly used terms in this industry will help you have a better grasp of what your policy is about.
One of the key terms you should learn is “Actual Cash Value” (ACV). Insurers determine this by subtracting “depreciation” rating (a percentage that factors in the damaged/lost item’s condition, state, age, etc.) from the total cost of its “replacement.” The answer they will arrive at is the amount of money they’ll spend in repairing/rebuilding/replacing the item of concern.
Your Connecticut homeowners insurance policy is your property’s and valuables’ first layer of protection, so make sure you purchase the required coverage minimums.