Replacement Cost vs. Cash Value for Homeowners Insurance

Homeowners insurance protects the investments you've made in your property and other assets by providing compensation after theft, damage, or other issues. Understanding the differences between policies that offer replacement costs and cash value can help you choose the appropriate coverage for your needs.

Replacement Cost Homeowners Insurance

If you choose this type of policy, you will receive the replacement cost of your stolen or damaged property. Your insurance company will provide a settlement that covers the cost of buying new items to replace the damaged goods. If your home becomes a total loss after a catastrophic event, replacement cost insurance covers the full expense of constructing a new structure of comparable quality. Because of this, the premiums for these policies tend to be higher than those for cash value policies.

Cash Value Homeowners Insurance

These policies offer you cash for the current value of a damaged or lost item when you file a claim. For example, if your home must be rebuilt, the insurance company will pay the market value of your home rather than the cost to rebuild a new home of the same quality. The same goes for your other possessions. If you need $1,000 to buy a new couch but the damaged one has an estimated value of $500, your insurance payout would be $500 for that item. If you choose this type of coverage, you may need additional insurance for items that are uniquely valuable and appreciate over time, such as artwork, antiques, classic cars, and other collectibles.

To learn more about your options for homeowners insurance, schedule a consultation with the team at Connell & Curley Insurance Agency Inc. We've been serving clients in Natick, MA and the surrounding areas for more than five decades. Call (508) 655-1112 or complete our online form to request an appointment for an insurance quote.

Four Steps to Take Before Filing an Insurance Claim

Filing an insurance claim is an effective way to avoid financial stress during a difficult time. However, filing a claim for an accident, health issue, disaster, or unforeseen hardship is a multi-step process, so it's important to be prepared in case the unpredictable occurs. Here are four steps you should take before filing an insurance claim.

Notify Your Insurer as Soon as Possible

Insurance claims are easier to adjust when the accident, disaster, or loss has recently occurred, and the evidence is fresh and readily available. It's therefore vital that you notify your insurance agent as soon as you can if you are planning to file a claim. Some policies set a time frame for reporting a claim, and you don't want to miss your window of opportunity.

Review Your Insurance Policy

Before filing a claim, you should also revisit your insurance policy to review what it does and does not cover. Make sure that you understand your policy's guidelines so that you fulfill your obligations for receiving payment. If you have any questions or concerns about your policy, contact your agent for a more detailed explanation.

Keep Track of All Documents and Records

Whether you're filing an auto insurance claim for an accident, homeowners or renters claim for damages, or a health claim for medical services, it's critical that you keep track of all documents and records related to your claim. These may include police reports, photographs of the accident or damage, and medical evaluations and bills. Having copies of these documents together and ready to go will increase your chances of successfully filing a claim.

Preserve Damaged Property

If you have been in an accident or have suffered damage to your home, you should also take steps to preserve your damaged property. Repairing, discarding, or causing further damage can invalidate important evidence related to your insurance claim. You should only make changes to your damaged property once an adjuster has completed a full evaluation.

Accidents, losses, and hardships can occur without warning, so it's essential to be prepared to take the necessary steps in filing a claim. Since 1965, Connell & Curley Insurance Agency Inc. has been providing residents of Massachusetts's MetroWest with auto, home, life, health, and business insurance coverage. To request a quote or consult with an agent, contact us today by calling (508) 655-1112.

Three Ways to Prepare Your Teen for the Road Test

For Massachusetts teens, 16 is an exciting age. For their parents, it comes with mixed feelings. If you're a parent, you probably find yourself looking forward to the convenience of your children providing their own transportation one day, but you may also feel concerned about their safety on the road. Here are a few ways to help your new driver make sure they have the knowledge and skills they need to be ready for the road test.

Talk to Your Teenager About Driving

Teenagers often look forward to the newfound independence that comes with a driver's license, but it's important that you talk to your son or daughter about your expectations. Emphasize that driving is a privilege, not a right, and establish clear rules, such as:

• No devices while driving
• Set driving hours/curfews
• Limited number of passengers
• Repercussions for dangerous driving
• Paying for their own auto insurance

Practice With Them in Various Weather Conditions

Drivers education introduces your teen to different driving situations, but set practice times during specific semesters means that they likely won't have the opportunity to drive in the many types of weather they'll face on the road before they take their driving test. Be sure to practice with them in as many weather conditions as possible, including heavy rain and snow, to ensure real-world preparedness.

Encourage and Support Their Progress

Equally as important as promoting safety and house rules for driving is instilling self-assurance in your teen as they make progress. As enthusiastic as they may be, they may also feel nervous about their upcoming road test and the freedom that comes with a license. Encourage them when they struggle and make a point to praise their successes. This may help prevent anxiety on the road and lead to safe, confident driving.

If your teen is getting ready to hit the road, the experienced local agents at Connell & Curley Insurance Agency Inc. can help. Contact our Natick, MA office today for a competitive auto insurance quote.