Insurance offers security, covers loved ones, and recovers losses in the event of damage, illness or death. Insurance offers protection but over time the value of our homes and the items in them may appreciate or change. What was once worth $100,000 a decade ago may be worth much more today. Be sure your policies keep up with the current values.
Whether you live in Schaumburg, Chicago or a smaller city in Illinois, replacing everything you own would be difficult if a disaster struck. If you are a first-time renter or if you have a 30-year mortgage, your possessions, property, loved ones and the people who visit deserve the protection that comes with a homeowners or renters policy.
Terms Made Easy
Insurance has its own terms that can be tough to understand sometimes; so, we have a beginner’s guide to make “insurance-y terms” easier to understand.
- Claim: a formal request by a policyholder to an insurance company for coverage or compensation for a covered loss.
- Coverage: specific protection provided by a policy against the results of the hazards insured against.
- Deductible: the amount paid out of pocket by you, the policy holder, before the insurance provider will pay any expenses.
- Exclusions: a section of the insurance policy that specifies the losses that are not protected by the policy.
- Peril: in an event, like a fire or break-in, that may damage your home or belongings.
- Policy: a contract between the insurance company and the policyholder (you), which determines the claims which the insurer is legally required to pay. In exchange for an initial payment, known as the premium, the insurance company promises to pay for loss caused by perils covered under the policy language.
- Premium: a periodic payment made by you (the insured) to the insurance company in exchange for insurance coverage. There may be discounts you can receive if you pay your premium in full or have your home and auto insurance policies with the same insurance carrier.
- Replacement Cost: the cost of replacing or repairing property using new materials of like kind and quality without deduction for depreciation.
- Quote: is an estimate provided by the insurance company concerning the price of a policy. Insurance companies provide a quote to prospective policyholders, so they have an idea of the cost of purchasing coverage from that insurer. Often time, policyholders ask for quotes from various insurance companies to compare prices and coverage options.
Ways to Observe National Insurance Awareness Day
Today offers an opportunity to learn more about the types of policies available to you as a consumer. Here are some things to consider:
- Get a free quote: today is a great day for anyone renting or owning a home to consider new options for their insurance.
- Evaluate your possessions: take a look at what you have in your home. Have you recently bought new furniture or TV? The items you have in your home have value and you want to make sure you have enough coverage if you have to replace everything if there was a fire in your home or apartment.
- Has your family changed: have your children moved out or have they recently gotten their driver’s license? Making sure to update your household members can help with your premiums.
- Have you bought a new house or are you looking to buy: have you been thinking about moving? Are you looking to downsize? Have you talked to your agent about what you are thinking?
- Do you need flood insurance: if your home experience a flood, that is not covered under a normal homeowners policy. You will need to purchase a separate insurance policy that covers flood.
Call R.C. Keller & Company
R.C. Keller & Company has the experience with helping customers find the correct coverage they need to protect their livelihood. We have been serving the residents of Schaumburg and the surrounding areas since 1910, and don’t plan on stopping any time soon. Our licensed and experienced agents will walk you through the insurance process. Give us a call at 847-907-4520 for a no-obligation quote on your home, auto or business insurance.