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Re: NAGICO Chairman Speaks
[Re: JMSH]
#163151
06/11/2018 03:25 PM
06/11/2018 03:25 PM
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Joined: Dec 2005
Posts: 702 Rhode Island
Bluesfan
Traveler
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Traveler
Joined: Dec 2005
Posts: 702
Rhode Island
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The reduction in coverage based on the amount of claim paid must be unique to the Islands......that certainly is not the case in North America. Maybe it is a European way of providing insurance. This is common in the US. If the replacement cost of your home is $500,000 and you only insure it for $300,000, your claim will be reduced proportionately. Insurance companies want premiums for the full replacement cost of your home. Read your policies carefully.
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Re: NAGICO Chairman Speaks
[Re: ruralcarrier]
#163154
06/11/2018 03:48 PM
06/11/2018 03:48 PM
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Joined: Mar 2007
Posts: 221 London,Ontario CDN
JMSH
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Traveler
Joined: Mar 2007
Posts: 221
London,Ontario CDN
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I understand that, this is not what he is talking about. He is referencing that if you had your home insured for $500,000 and had a $200,000 fire and a claim paid out for $200,000, after the claim your policy is now only worth $300,000 and you have to purchase the additional $200,000 again for the remainder of the term of the policy (they call this the reinstatement premium) . In actual fact what you are talking about is more less called co-insurance. On most home insurance policy the insurer warrants that you insure to 100%, on most commercial occupancies the co-insurance factor might be 80% or more likely 90% of the full rebuilding value...... the lower the requirement the higher the rate per $100 of insurance.
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