subject: Property Insurance Benefits [print this page] There are times when we engage ourselves in ensuring that the property we possess is in total safety. We normally assure ourselves of maximum security by utilizing the best known forms of security. This does not come for free as we have to fish our pockets in order to pay for security services either from the firms we employ or by buying the equipments that will safeguard our property. The worst thing about this is that your property can still get destroyed by factors such as earthquakes, fire, professional theft etc. this is where the aspect of property insurance comes about.
We need to be totally certain that we can be compensated just in case we suffer from unexpected calamities that are similar to the mentioned above. Property insurance can be able to assure you of full compensation depending on the type of insurance that you placed on your property. There are three ways in which you will be remunerated for your property.
Replacement cost
Cash value
alternative living options included in ones policy
Property insurance would compensate you for the property that you suffered loss on without considering the depreciation factors or even appreciation. This is what is termed as replacement cost compensation. The premiums that you pay on a regular basis would also be different from the other forms of premiums that you are used to paying. Here you will pay them basing on the replacement cost as valued by the insurance firm.
The other way that you will be covered by property insurance would be by using the cash value of the property having all the factors of depreciation considered. The depreciation is deducted from the replacement cost. Therefore if your property has been in existence for a long period of time then you will have to deduct high values of depreciation to be able to come up with the exact values that you will be covered for.
The third option is quite easy and all you have to do is to make sure that the policies you place with the insurance firm are inclusive of alternative living options. In case your property is fully destroyed to the extent that you cannot use it in any way then you will have to be provided with somewhere else where you can live. This is the coverage that the firm will compensate you for. For instance if your house burnt to the ground the insurance firm could opt to pay for you a lodging where you can stay as you reorganize yourself. The payout would also be dependent on the amount of premiums that you have paid with the insurance firm.
You should be wise enough to make sure that you do not suffer losses just because you failed to insure your property against unforeseen events. With this type of insurance there is no loss involved. In fact it makes rising up again quite easier as you suffer the losses with the insurance firm that offered their assistance.
by: Shane Luise
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