Pilgrim Insurance Services
Pilgrim Insurance Services
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ANTIQUE HOMES: INSURANCE MATTERS Insurance Insider Reveals Little Known Secrets: Traditional Homeowner Policies Just Don't Pay Up! For most owners of old homes, homeowner insurance is a mystery. Because they don't understand it, they are often left uninsured when claims come up. I can help keep that from happening. I have worked for insurance companies. I have worked for agencies. I have written, sold, discussed, analyzed and serviced insurance policies. I know "good" coverage and I know "bad" coverage. I also know that everyone has unique situations that may not be addressed in those "standardized" or "normal" homeowner policies that every agent sells. This is especially important for owners of antique homes. Some
Facts About Rebuilding Antique Homes 1. Antique homes are unique. Rebuilding or repairing them is much different from rebuilding or repairing normal homes. These differences sometimes require original blueprints, job site supervisors or architects. Many insurance companies will not consider these things covered. 2. Normal to antique homes are Edwardian light fixtures, high ceilings, plaster walls, Craftsman paneling and push button light switches. Restoration of characteristics like these requires specially trained builders and consultants. 3. Building codes have changed dramatically since the early 1900s. The additional costs associated with meeting new building codes while rebuilding or repairing antique homes can be staggering. These costs are generally not covered unless specifically requested when the policy is purchased. 4. In rebuilding or repairing antique homes, custom-made building materials are the norm. For instance, 21" wide pine flooring is normal in many antique homes. However, most mills cut flooring in 18" wide sections. Custom made building materials dramatically increase the cost of rebuilding or repairing. 5. In insuring antique homes, replacement cost on the structure is absolutely essential. However, most traditional insurance companies will not provide this important coverage. The truth is that most people think that their Homeowners policy covers them completely in the rebuilding or repairing of their antique home. But the reality is, Homeowner policies are filled with exclusions and limitations on coverages that antique homeowners need the most. Let's hope something like this never happens to you! While on Christmas vacation, the Bishop's antique home was partially damaged by water from a broken pipe. The actual costs for repair were covered by his homeowner policy. Unfortunately, the costs of bringing the damaged electrical system up to code, was not covered. Mr. Bishop had to pay $3,000.00 out of his own pocket for this repair. If he had "Ordinance or Law" coverage, it would have been covered. This "Ordinance or Law" coverage is extremely important to owners of old homes. But it is not provided by many standard homeowner policies. Replacement
Cost Policy: Do You Have One? Al lived in a beautifully restored Victorian home. An electrical fire totally destroyed his house. Once the actual costs of replacement were computed, Al saw how underinsured he really was. He was unable to rebuild an authentic replacement of his home. He
Did Not Have A Replacement Cost Guaranteed Policy. The actual cost to rebuild an antique home is much higher than you would imagine. The costs for special order dimensional lumber alone are astronomical. Because of this, you need a replacement cost guarantee on your homeowner policy. Only a few companies are willing to provide this important coverage to antique homeowners. The Shea family owns a Federal Colonial just off the Town Green in their community. They feel very confident that their homeowner policy is a good one. You see, when they purchased the policy, a very detailed inspection of the house was completed by the insurance company. The insurance company sent an expert to formally appraise their home. This appraisal made detailed accounts of the features in the home. This assured the Sheas and the company that the proper amount of insurance was carried on the policy. These detailed accounts have become part of the insurance contract. Also comforting to the Sheas is knowing that in the event of a loss, Restoration Consultants, Architects, expert builders and craftsmen are paid for. Don't Assume That You Are Covered By Your Homeowner Insurance. You
Probably Are Not. Seven
Things That You Will Cost You Money If You Have A Claim While Insured With A
Standard Type Homeowner Policy. 1. Replacement Cost Dwelling. If the actual replacement cost for your home is greater than what you carry for coverage, you could be penalized in your claim and receive much less of a settlement. Replacement Cost Coverage protects you against this happening. 2.
Ordinance/Law Coverage. Also
known as "rebuilding to code". Entire
parts of your rebuilding project could be EXCLUDED
from coverage if your policy does not provide this coverage.
It is IMPERATIVE COVERAGE FOR
ANTIQUE HOME OWNERS. 3. Unlimited Loss of Use. The length of time to rebuild an antique house could be long. Most policies limit the amount of cash they will pay to cover your expenses while temporarily living elsewhere. 4. Replacement Cost Cash Option. Suppose you wanted to rebuild your destroyed home at a different location. Or even decide not to rebuild at all. Under most policies, you could only collect the ACTUAL CASH VALUE of your home in this case. The ACV would be much lower that the replacement cost. You need a policy that gives you the choice and will pay replacement cost regardless of where you rebuild. 5. Debris Removal. Did you know that much of the debris after a fire is considered HAZARDOUS WASTE? Did you know that paying for the removal of hazardous waste is extremely expensive? You NEED a policy that pays this in full. 6. Back-up of Sewers and Drains. It happens! And when it does there is always a big mess. You NEED a policy that will cover you. 7. All Risk Coverage on Personal Property. Have you ever spilled paint on your oriental rug? Dropped your big screen TV while moving? Spilled a soda on your brand new IBM? None of this is covered under a standard homeowner policy. You NEED a policy that will pay when you need it. Have I got you thinking yet?
Are you getting a bit concerned that you may not have the proper
coverages in place yet? Do you see that owning an antique
home presents all kinds of potentially damaging insurance problems? If so, you are half way towards getting all these problem areas straightened out - THE RIGHT WAY. I would like to help you get the rest of the way there. But first, I want to tell you how to avoid making two big mistakes. 1. DO NOT GO TO AN INSURANCE AGENT WHO IS NOT AN EXPERT! Insurance is a huge industry. There is insurance for everything. Nobody can specialize in all of it. Use an agent who has specialized in this area.
2. USE AN INDEPENDENT INSURANCE AGENT. I'll be blunt about this. You want an agent who works for you. You don't want an insurance company employee for your agent. You want someone who will look out for you. Not someone whose paycheck is tied to one company. Use an independent agent! Now
Here Are Some Things You Need To Have Done To Protect Your Antique Home And
Personal Finances From Disaster! v Be certain you have the correct replacement cost for your home, and insure for that amount. v Be certain you have a Replacement Cost Policy. v Be certain you have selected an Insurance Company that has specialized experience with homes like yours. v Be certain that you consider Middlesex Mutual Assurance Company. This company leads the field in insuring antique homes in Connecticut. How Would You
Like To Get Your Home Insured Properly Through An Agent Who Will Take The Time
To Consider What Is Best For You? I work hard for my clients. And it seems that the harder I work for them, the more they send their friends to me. I give a lot of information away - FREE. That's just the way I do things. And as a result, my clients stay with me a long time. So if you would like to know how to adequately protect your home, call me. The worst that can happen is that you will learn more about insuring your home. I hope to hear from you soon. Sincerely, Michael J. Levesque Compliments of Pilgrim Insurance Services, 786 Boston Post Road, Madison, CT 06443 (203) 245-8948. |
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