Homeowners need to be aware of their home’s replacement cost, as this value is what will determine any claim settlement. Replacement cost is the actual cost to replace any personal property or structure to its pre-loss condition. Replacement cost can change from year to year, regardless of real estate trends.
How To Determine Your Replacement Cost
The most important thing you can do to determine the replacement values of your personal property is to create a home inventory.
Having an accurate replacement cost is critical in having the right amount of insurance.
What Is Insurance Designed to Do?
Most people who buy insurance do not fully understand their coverage until they have a claim. Once you have a claim, it is impossible to make any changes. Insurance is designed to protect you from unforeseen events or accidents. Insurance is not intended to cover every accident or loss.
These are the apparent exclusions in every policy:
Many think that operating a small business has little or no risk. The fact is, operating a small business has just about the same risks as any other business. Employees can still sue you, you can cause injuries to your customers, and your building can burn just like a big business. General liability risk is very real for small businesses and it is important to have a business insurance program that addresses these issues.
To protect a small business from potential lawsuits, liability insurance is necessary. Policies vary greatly, and they cover different classifications of risks for varying costs.
Commercial General Liability Insurance covers claims from accidents, injuries, or negligence when the business is at fault. Small businesses may face a wide array of damage charges. Personal injuries, property damage, libel, and slander are just a few examples.
Product Liability Insurance covers legal fees for litigation involving a faulty product. It also covers any personal or property damage charges caused by the defective product.
Employment Liability Insurance provides protection for an employer against claims made by employees, former employees, or potential employees. It can cover discrimination (age, sex, race, disability, etc.), wrongful termination of employment, sexual harassment, and other employment-related allegations.
Professional Liability Insurance pays for damages caused by services. It is also called errors and omissions coverage. This is for companies that market a service instead of a product. For example, professionals in medical clinics must have medical malpractice coverage.
Cyber Liability Insurance covers the risk posed by conducting business over the Internet, over other networks, or using electronic storage technology. It covers third party losses from hackers, theft, and loss of information including sensitive client or individual personal information.
There are other types of insurance designed for specialty businesses. For example, there are special policies for companies involved only in internet sales. The nature of the business determines what type of coverage is necessary.