Insurance: everything about the compensation of damages - Insuring your home is essential to qualify for coverage and up the slope in case of disaster. It thus becomes imperative to know how is the compensation of damage and the assessment amount. Next guarantees included in your property insurance contract, damages can be classified into three main categories: damage to others, damages to your property and finally the damage that can affect your personal belongings. Details on each compensation. Reporting procedure depends on your insurance claims met.
Compensation for damage caused to others
The liability coverage is essential for insurance and property insurance is no exception. It protects you from any accident involving your liability. In insurance, the insurer is liable to compensate victims of a disaster which the insured is at the origin. The amount paid will depend on the safeguards provided in the contract of the latter. Furthermore, it is for the insurer to transact the amount of money awarded with the rights holders or persons injured. The purchase of liability coverage you then removes an enormous weight in case of accident.
Compensation for your property
If your property has been severely damaged, the amount of compensation for the repair or reconstruction will always be evaluated according to the cost of current methods or materials at the time of loss. The age will obviously take into account in this calculation. The costs incurred in the demolition, removal, excavation, transportation of rubble, and your architect’s fees are included in the amount awarded. Aware that this coverage is often insufficient to cover the damage, most insurers pay what is called “rebuild anew. It is an additional allowance up to 25% of the total value of reconstruction. To qualify, the insured must commit to rebuild in the same place without making any substantial changes to the architecture of the house and not the change of use. If the work extends over more than two years after the date of the accident, compensation will be calculated on the basis of the sales value of housing in time of loss excluding the land value.
Indemnification of your personal property
The current furniture is generally compensated according to replacement value at time of loss. The deduction is made according to the dilapidated condition of the property insured. If a franchise in your contract, it will also be deducted from your total compensation. To avoid the application of the coefficient of decay, it is advisable to take out a warranty “replacement cost”. Be aware, however, that you can pay this kind of formula to 20% more expensive than a standard contract. Your valuables in turn, are compensated on the basis of market prices. By submitting an invoice and if the object in question was less than two years, you can claim compensation calculated according to the purchase price thereof.
