Goen & Goen has been named Agent of the Month for Stroud National Agency. We write irrigation pivots, and farm and ranch business with Stroud National. Goen & Goen has been doing business with Stroud for over 45 years. We recieved a very nice bouquet of flowers from Cathy's Floral in Floydada as well as $100 in cash. You can see our picture on Stroud's facebook page. http://www.facebook.com/stroudnationalagency
If you have an irrigation pivot or any farm business you need insured, let us keep you covered, and at the same time help us work towards the Agent of the Year award with Stroud National!
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Thursday, October 20, 2011
Thursday, October 6, 2011
Insuring homes to Replacement Cost
I wanted to pass this on. We have sent out letters to our customers who own dwellings discussing the importance of insuring your home for the amount it would take to build it back. Thanks for reading!
Replacement Cost Limitations
Jim Gavin, Education
The recent wildfires, which have destroyed more than 1,600 homes in Texas, serve as a reminder of the importance of providing replacement cost coverage for both the dwelling and personal property.
The ISO HO-03 requires that the amount of insurance on the dwelling be at least 80 percent of the full replacement cost prior to the loss. If the proper amount of insurance is carried there will be no deduction for depreciation; however, the 80 percent amount still leaves a significant gap in coverage. Underinsurance is not uncommon. National estimates indicate that as many as 65 percent of homes may be underinsured by an average of about 19 percent.
In Texas, a total loss by fire to real property is considered to be a liquidated demand against the company for the full amount of insurance, but this provision does not apply to personal property. For any loss to real property other than a total loss by fire, only the Actual Cash Value will be paid until the replacement is complete.
The Personal Property Replacement Cost Loss Settlement HO 23 04 also only pays ACV for items over $500 until the items are replaced. And replacement cost does not apply to articles that are not maintained in good or workable condition or that are outdated or obsolete and are stored or not being used. It also does not apply to antiques or paintings or other fine arts that can not be replaced.
Replacement Cost Limitations
Jim Gavin, Education
The recent wildfires, which have destroyed more than 1,600 homes in Texas, serve as a reminder of the importance of providing replacement cost coverage for both the dwelling and personal property.
The ISO HO-03 requires that the amount of insurance on the dwelling be at least 80 percent of the full replacement cost prior to the loss. If the proper amount of insurance is carried there will be no deduction for depreciation; however, the 80 percent amount still leaves a significant gap in coverage. Underinsurance is not uncommon. National estimates indicate that as many as 65 percent of homes may be underinsured by an average of about 19 percent.
In Texas, a total loss by fire to real property is considered to be a liquidated demand against the company for the full amount of insurance, but this provision does not apply to personal property. For any loss to real property other than a total loss by fire, only the Actual Cash Value will be paid until the replacement is complete.
The Personal Property Replacement Cost Loss Settlement HO 23 04 also only pays ACV for items over $500 until the items are replaced. And replacement cost does not apply to articles that are not maintained in good or workable condition or that are outdated or obsolete and are stored or not being used. It also does not apply to antiques or paintings or other fine arts that can not be replaced.
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