Take this little quiz and find out…..it may have you quakin’!  Your house is insured for $500,000 which would be its replacement value if it were completely destroyed.  You’ve agreed to pay a 10% deductible which is fairly standard. However, one day there’s a “sort of earthquake” which causes $100,000 damage.  You’ve suffered through all the required appraisals and adjustments and estimates, so now what’s the maximum payout you can expect to receive?
                                    (1) $90,000?      (2) $50,000?      (3)  Nothing?

The obvious answer seems to be (1) but unfortunately the 10% deductible is applied against the TOTAL insured value of $500,000, not 10% of the damage cost.  So then the answer seems to be (2)……but we’re not done yet.  Check your policy; it may have a clause stipulating that the minimum deductible is $100,000.  In that distressing situation, the answer would be (3).
                       
If you’d like more details check with your insurance company or contact the friendly folks at Hodges Insurance.

Lois D.

Sometimes I’ll mention names of certain services or professionals we’ve found to be truly outstanding, not just satisfactory.  These referrals are unpaid and unsolicited.  While we can’t guarantee them, of course, we hope you’ll be pleased when you check them out.