Call Us (518) 464-0059 ☰ ˟
Referral Rewards Request A Quote
Ten Eyck Group

(518) 464-0059
  • Home
  • Coverage
    • Airbnb
    • Automobile
    • Boat
    • Bonds
    • Commercial
    • Condominium
    • Cyber Liability
    • Employment Practices Liability
    • Financial Services
    • Flood
    • Group Health
    • Health
    • Homeowners
    • Life
    • Motorcycle
    • Personal Umbrella
    • Recreational Vehicle
    • Renters
    • Special Events Insurance
    • Uninsured/Underinsured Motorist
  • Get A Quote
    • Airbnb
    • Automobile
    • Boat
    • Bond
    • Business
    • Classic Car
    • Condo
    • Disability
    • Flood
    • Health
    • Homeowners
    • Jet Skis
    • Life
    • Long Term Care
    • Motorcycle/Recreational Vehicle
    • Non-Owned Auto Quote
    • Renters
    • The News Apartments
    • The Vicina Urban Flats
  • Customer Service
    • Customer Service
    • File A Claim
    • Make A Payment
    • Policy Review Request
  • Blog
  • Resources
    • Claims Corner
    • COVID-19 Resources
    • Important Links
    • Newsletter Archive
    • News Center
    • Refer a Friend
    • Secure File Area
    • Video Library
  • About Us
    • About Ten Eyck Group
    • Careers at Ten Eyck Group
    • Community Involvement
    • Meet The Team
    • Our Office Location
    • Our Reviews
    • Privacy Policy
    • Your Trusted Choice Agency
  • Contact Us
    • Contact Us
    • Join Our Newsletter
Commercial
Insurance

Minimize your risk with the best options

Personal
Insurance

Get the right coverage at the right price

Life & Health
Insurance

Protecting you for life, disability and long term care

Group
Benefits

Superior service to fit your needs

Surety
Bonds

Let our expertise guide you

Home > Blog > The Millennial Minute: Insurance Policies are all the same...aren’t they? (Part 1)
MONDAY, SEPTEMBER 11, 2017

The Millennial Minute: Insurance Policies are all the same...aren’t they? (Part 1)

By: Greg Barcomb

The following blog is the 1st part of a series of posts focusing on the different aspects and terms of an insurance policy. 

The worst time to try and figure out what’s in your insurance policy is after a loss.  The chaos and anxiety that follows an event that triggers an insurance policy is enough without having to then understand what coverage you have and how you will be indemnified.  We all have heard stories and seen commercials highlighting the horrors of not getting what you “thought” you would out of your insurance.  But how is that possible?  Isn’t homeowner or car insurance all the same?  Is it not just about whether some companies are cheaper than others?  Not really. 

It isn’t just about the company you purchase from but also about the “kind” of policy you purchase.  Not all policies are the same and companies often have different policy products to offer.  Now, before I put you all to sleep with confusing insurance language and boring technical terms, we need to understand how these 100+ page insurance contracts came to be 100+ pages.  The contract needs to outline EXACTLY what risks you are transferring onto the insurance company, and also, exactly what you are NOT transferring.  Imagine you have an inquisitive little 5 year old in the back seat of a long car ride and every question starts with “what if…?”  Now imagine having to answer all those hypothetical questions not only clearly, but in a way that must hold up in court of law…  That’s basically an insurance policy.

Insurance companies aren’t out to “get you” or scam you into buying something you can’t use, they have to offer options to the marketplace.  And those options change the limits and exposures covered in the policy.  As Benjamin Franklin once said, “the bitterness of low quality remains long after the sweetness of low price”.  Now I know that sounds like a cheesy sales line, but from what I remember from History class, Ben Franklin was a pretty smart guy who said a lot of very useful things.  So let’s see if we can gain some knowledge so we better understand what it is we are purchasing when it comes to insurance.  And we will start with the basics.  

Now go grab a cup of coffee and get comfortable- because here comes the insurance lingo!   Remember, the devil is in the details!

If nothing else, one of the more important things to look for when purchasing home or auto insurance is the type of loss valuation, or basically what and how you will be paid in the event of a covered loss.  These come in a couple different ways, here is quick outline of the major ones:

Replacement Cost:  This will replace the full cost of the property with like, kind and quality materials without the cost of depreciation.  The caveat with replacement cost is the insurance company will require you to insure the property/building within a percentage of full replacement cost (which is often more than the cost of the home, because it takes more than just the rebuild into consideration).  If you do not insure to within the required amount, you could face a co-insurance penalty.  There is way too much about co-insurance to get into for this blog…. So we’ll save that for another day. For the purpose of brevity, let’s just state that Co-insurance penalties are something you want to avoid.  Having proper limits and understanding how the policy works will make your loss settlement go much easier.

Actual Cash Value:  This valuation starts the same as a replacement cost, but then subtracts out depreciation.  So you may have purchased your car for $30,000 three years ago, but you will only receive the actual cash value at the time of the accident, not the cost of a “like or kind” new model.  These policies are often much more cost effective, and to be fair, in the right situations make a lot of sense.

Agreed Amount:  In certain situations, insurance companies will accept a specifically requested amount of insurance from the insured, and it is agreed upon by signing a “statement of values”.  Agreed amount or agreed value, offers the most clear cut valuation option.  This is often done for classic cars that are difficult to identify a true “replacement cost” and don’t really depreciate the same as your standard car. 

I promised myself I would keep these blogs short(ish), so I will leave it with just these three.  This is only skimming the surface of different things to look out for in an insurance contract.  But have no fear, there is an entire profession dedicated to looking at these differences and advising you to make the best decision for what you need/want out of your insurance.  Knowledge is power!

Posted 8:05 PM

Tags: the millennial minute
Share |


No Comments


Post a Comment
Required
Required (Not Displayed)
Required


All comments are moderated and stripped of HTML.

NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive
  • 2023
  • 2022
  • 2021
  • 2020
  • 2019
  • 2018
  • 2017
  • 2016
  • 2015

  • ten eyck group(38)
  • home insurance(17)
  • business insurance(15)
  • auto insurance(14)
  • car insurance(10)
  • covid-19(6)
  • insurance(6)
  • the millennial minute(6)
  • health insurance(5)
  • flood insurance(4)
  • life insurance(4)
  • protection(4)
  • cyber liability insurance(4)
  • commercial insurance(4)
  • coverage(4)
  • homeowners insurance(3)
  • motorcycle insurance(3)
  • bop insurance(3)
  • surety bonds(2)
  • rideshare insurance(2)
  • albany life insurance(2)
  • albany motorcycle insurance(2)
  • renters insurance(2)
  • boat insurance(2)
  • albany flood insurance(2)
  • professional liability insurance(2)
  • general liability insurance(2)
  • antique car insurance(1)
  • long term care insurance(1)
  • college graduate insurance(1)
  • driving record(1)
  • cyber bullying(1)
  • crime coverage(1)
  • albany life insurance policy(1)
  • albany business interruption insurance(1)
  • travel insurance(1)
  • albany car insurance(1)
  • new york cyber liability insurance(1)
  • albany condo insurance(1)
  • snowmobile insurance(1)
  • bonds(1)
  • cyber threats(1)
  • personal insurance(1)
  • actual cash value(1)
  • replacement cost(1)
  • flood zones(1)
  • albany auto insurance(1)
  • president's circle(1)
  • rv insurance(1)
  • new york(1)

View Mobile Version

Featured Carriers

  • Acadia Insurance
  • Adirondack
  • Aflac
  • Allianz
  • AmTrust
  • Andover
  • CDPHP
  • Chubb
  • CNA
  • Dryden
  • Encompass
  • Erie and Niagara Insurance Logo
  • Great American
  • Guardian
  • The Hartford
  • Hanover
  • Highmark Northeastern New York Logo
  • Kemper
  • Liberty Mutual
  • Main Street America
  • Merchants
  • MVP Health
  • Nationwide
  • NYCM
  • perma logo
  • Philadelphia
  • Progressive
  • Pure Insurance
  • logo
  • Sentry
  • Travelers
  • Utica National
  • Vermont Mutual Insurance Group
Facebook
Twitter
LinkedIn
Google+
Get Directions
Contact Us Today
Have Questions?
Contact Us
Resources
Our Products
Customer Service
Payment Options
Report a Claim
Newsletter
Video Library
About Us
Refer A Friend
Our Carriers
Trusted Choice Agency
Blog
Contact Us
Contact us 1924 Western Avenue
Albany, NY 12203

Ph: 518.464.0059
Fx: 518.456.7076

Logos
© Copyright 2021. All rights reserved. Powered by Insurance Website Builder.
Trusted Choice