Scenario loss analysis is an invaluable way of evaluating the adequacy of your insurance program, but should not be used alone as the sole basis for coverage decisions. Woodruff Sawyer experts use qualitative factors, business goals, comparative benchmarking data and risk tolerance assessments combined with an in-depth knowledge of the insurance marketplace to assist companies in selecting between traditional and alternative forms of risk transfer mechanisms.
Homeowners
Increases in homeowner insurance premiums may be caused by various factors; fortunately, there are ways to lower them as well. One effective strategy is comparing multiple insurers’ quotes. Sometimes loyalty can pay off with reduced rates provided to longtime customers by providers.
Your home insurance premium depends on the amount you insure it for; its goal should be to cover its replacement cost based on comparing its current value with its ACV, less depreciation. Furthermore, homeowner coverage may include living expenses while repairs take place at your residence.
Companies typically offer both basic package form (HO-3) and more comprehensive policies to cover any perils which might arise; many offer both.
Renters
Homeowners typically must secure their building with property insurance through their mortgage company; however, renters typically do not need to do this as they own very little of where they live. However, many landlords include in their lease agreement a requirement that renters purchase a renters policy to protect personal belongings from damage, theft and other events that might leave them without essential items. A policy such as this will protect a renter against such events while simultaneously helping keep costs low for both landlord and tenant alike. Renters looking to determine how much coverage they need should conduct a home inventory and estimate its value. Renters should include their landlord as an interested party on their policy to ensure they will be informed if payments are missed, the policy canceled, or its details change – helping avoid disputes during an emergency situation.
Renters typically benefit from being covered against hazards like fire, lightning, smoke and water damage (excluding floods) as well as burglary, vandalism and accidents caused by natural causes or human error.
Condominiums
Condominiums provide an attractive home ownership solution for people who want a house but aren’t up for the hassles and maintenance responsibilities that come with owning one on their own. While condominiums tend to be found in high-rise buildings, their use has also spread to townhouses and commercial properties. Residents in condominiums typically own their living spaces independently while sharing ownership over common areas and exteriors of the building with others; homeowners associations oversee management of this aspect on behalf of residents.
Condo buyers need to understand how condos differ from apartments and single-family homes. Condos are owned by individual owners instead of being managed centrally, enabling residents to build equity while taking full responsibility for maintaining the space themselves; apartment renters on the other hand don’t take on such responsibility.
Condos differ from apartments by being constructed on land that can be owned outright while apartments usually rent. Condos may be governed by either a homeowner’s association or community development corporation that can impose rules and regulations upon units, such as spending limits for remodeling projects such as paint colors or furniture purchases as well as rent/sell restrictions and which amenities owners are eligible to use such as garage parking spaces etc.
Condo insurance can be beneficial to anyone living in a condominium complex. Coverage options will depend on the extent of their master policy – some might only cover structure and shared spaces while others cover more extensive areas like hallways, lobbies and pools. Furthermore, more comprehensive policies could save money by bundling them together with auto policies to save even more.
