Also, make sure that you do not underestimate the amount of coverage you need. It is better to be generous! If you are deemed to be underinsured (and you have lost everything) you will not get the full amount you are insured for (every insurer is different on the amount they pay out, but you are penalised). That means, if you have taken out insurance for say $50K, but the assessor thinks it would actually cost $70K to replace everything, then they will only give you a %age of what you were covered for (80% for eg, which would mean a payout of only $40K).
It is better to be generous and even over-estimate, than take a chance that you won't get what you've been paying cover for. It is to stop people under-insuring.
Astrid - I just read your post - please check your policy as it sounds like they would consider that under-insuring!
Last edited by Jennifer13; February 13th, 2009 at 09:33 AM.
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