Tom's Blog
You like to think of your home as your haven for safety, security and peace of mind, but what about when the unthinkable happens and your house is totally destroyed? Being a homeowner comes with expected situations that may occur, such as roof damage or water damage, that may generate a standard homeowners insurance loss, but are you prepared to handle anything totally devastating such as losing your home? Find out how your N.C. homeowners insurance covers a total loss of your home so that if it happens, you will be better equipped to handle it.
Catastrophic incidents that destroy your home generate anguish and distress and can create a multitude of questions on how your N.C. homeowners insurance policy will handle the loss of your home. A standard homeowner insurance policy has specific limitations, provisions, and conditions that apply to your dwelling, contents, and detached structures so it is essential that you are aware of the terms and conditions of your homeowners policy BEFORE an occurrence happens.
By keeping the lines of communication open with your local N.C. independent insurance agent, you can make sure you have the right type of homeowners insurance protection/coverage in place so that if a loss does occur, you will be compensated adequately. While this won’t prevent something catastrophic from happening, you will have peace of mind knowing that if it does, it will be handled as arranged with your N.C. independent agent and won’t be blindsided by limitations and exclusions.
Settlement Options for a N.C. Home Total Loss
A standard N.C. homeowners insurance policy does have restrictions and limitations; however there are multiple additional coverage endorsements that can be applied to enhance the protection you may need for your home. These additional options can protect your home from worse case scenarios of having inadequate coverage when your home is totally destroyed and you find yourself in a position to rebuilt or replace. Below are two options your insurance company may utilize:
Enhanced Replacement Cost
Enhanced replacement cost coverage is designed to give “additional coverage” above the stated dwelling limit of insurance on your N.C. homeowners insurance policy to allow for additional costs to rebuild/replace with materials of like, kind, and quality. For example, if your home is a total loss and you hire the contractor to rebuild your home, your contractor may not allow for any discounts because they know your insurance carrier is paying for it and/or they are having to provide materials for only a single house versus getting a bulk discount for an entire community or neighborhood. Typically the additional percentage allowed under this type of enhanced replacement cost coverage is 25% to 50%. It is recommended you discuss this type of replacement cost with your local N.C. independent insurance agent for further details.
Guaranteed Replacement Cost
Guaranteed replacement cost coverage is designed to give you, the homeowner, the total amount needed to totally rebuild your home with the like, kind, and quality of materials and comparable square footage as long as certain policy provisions are met.
*The types of settlement options are of general nature so it is recommended you review your N.C. homeowners insurance policy in its entirety and discuss any coverage questions you may have with your local N.C. independent insurance agent.
Paramount Insurance Agency Can Assist You TODAY
Nobody likes to think of the “unthinkable”, but it is recommended you communicate with us in an effort to adequately insure your home so you will be properly prepared and protected. We can assist you with an accurate replacement cost amount to reflect your home’s true value at the time the policy is issued. (Of course, this amount could change depending on any type of home revisions you undertake.) Call us TODAY at 866-869-3335 with any questions you may have regarding your N.C. insurance coverage to handle a home total loss.
