By Michele Lerner
…Most insurance policies cover damage that’s of the once-in-a-blue-moon variety – like an airplane landing on your roof. Few, however, cover something experienced by thousands of homeowners every year: damage from flooding. The most common policy, an HO-3 (HO stands for “homeownersâ€), covers everything other than things specifically excluded. But the exclusions can be glaring……
…Another place to avoid scrimping is replacement vs. cash value coverage. From the clothes in your closet to your furniture, the things in your home are worth a lot less than you paid for them. If they’re destroyed and you want them replaced with new stuff, you need replacement coverage. If you have only cash value coverage, you’ll be paid their depreciated value – think yard-sale prices. If you can afford it, always get replacement coverage…
Published by