Facts About Warranties

COMMENTARY

• History of insurance invented by Benjamin Franklin.  The concept of a savings account for homes
• Home warranties differs from home insurance
  • Home warranty companies operate by telling their clients to perform service calls as a lost leader
  • Warranty companies highly motivate repair contractors to find something that’s not covered under home insurance
  • Under a warranty, likely will send their contractor to service the work.  You cannot choose the contractor
• Negotiating with your home insurance company with riders for repairs is a Win-Win

Ensuring 100% Replacement Cost Value

COMMENTARY

• Inflation, rising costs of materials require a realistic assessment of total replacement cost
• Meet with your agent for current values.  Insure total replacement cost to avoid being underinsured
• How claims are handled.  Insurance company goal is to have the job repaired correctly
  • Get the problem area stopped first.  Then the cleanup process can begin
  • Once assessed, the claim is filed
  • Find a reputable repair contractor with insurance company approval

Takeaways

TEXT

• Listener works risk control in large commercial insurance.  Underinsured is an epidemic!  Advises homeowners to work with their agents to update values each year.  Also flood losses are growing each year.

COMMENTARY

• Get with your agent to verify accurate coverage based on today’s construction costs
• Inside damage from a water leak is covered by homeowners insurance.  Outside water source damage is not covered
• Maintaining your home is important.  Wear and tear items are excluded in your policy