Replacement Cost Home Insurance in Virginia

What is Replacement Cost home insurance and why is my house insured for more than the assessment?

There are 3 values concerning any home in Virginia.

1. Market Value - the amount you could sell your house for.
2. Assessment Value - the amount the city or county charges you for tax purposes.
3. Replacement Value - the cost to rebuild your home.

Insurance companies are concerned with the cost to rebuild your home and there fore they Replacement Cost value when insuring your home.

Replacement Cost can be considerably higher than the assessment value or market value depending on your location and the age of your home. Older homes are more expensive to build then newer homes.

If you disagree with the amount of insurance on your house, ask your agent to run a new MSB estimate and see what amount is generated.

Why Everyone Needs an Independent Insurance Agent

Independent insurance agents in Richmond are becoming one of the best-kept secrets of the industry. Direct writers are bombarding the airways with catchy commercials about how much you can save but are you really saving or sacrificing coverage.

I don't have a single client who wants to pay more for insurance but they also don't want to get stuck with a $100,000 bill for injuries. Independent insurance agents in Richmond are here to make sure you receive the best rate while also making sure you have the coverage you need.

5 reasons to work with an independent insurance agent in Richmond

1. Independent insurance agents do all the work
2. Independent insurance agents are a one-stop shop
3. Every policy is different
4. Independent agent deliver outstanding service
5. Insurance is complicated

I'll expand on the line items above.

1. We are advocates who can check several markets to make sure you have a competitive rate and the coverage you need.
2. With access to several markets we can help you with your home, auto, boat, life, health and whatever you may need.
3. There are hundreds of insurance companies and each company offers a different policy.
4. With one call you get to speak to a live person.
5. With so many options available independent insurance agents are in demand now more than ever.

For more information or to obtain a free insurance proposal click here or call (804) 320-2886.

Flood Insurance in VA...What Does it Cover?

Flooding is the most common natural disaster in Virginia.

• Floods can occur almost anywhere at any time. You don't need to live near water.
• Flash floods, inland flooding and seasonal storms bring flooding to every region of the state including Richmond.
• Just inches of water can cause tens of thousands of dollars in damage.

Most homeowners insurance does not cover floods.

• Only flood insurance financially protects your home and your personal property from floods.
• A flood insurance policy compensates homeowners, renters and business owners for all covered losses, and as opposed to a disaster loan, there is no payback requirement.
• The average flood insurance policy costs about $600 per year.
• Once purchased, there is a 30-day waiting period for the policy to become effective, so don't wait to buy it!

You can purchase flood insurance no matter what your flood risk is.

• It doesn't matter whether your flood risk is high or low, you can buy flood insurance as long as your community participates in the National Flood Insurance Program.
• You can get flood insurance if your house has been flooded before, and you can purchase it even if your mortgage doesn't require it.
• People outside of high-risk areas file over 20% of NFIP claims and receive one-third of disaster assistance for flooding.

Preferred Risk Policies provide protection at the best price.

• For just $129 a year, homeowners can purchase a minimum of $20,000 building and $8,000 contents coverage ($25 more if there is a basement).
• Renters can pay as little as $49 per year for $8,000 contents coverage.
• Business owners can buy $50,000 building coverage and $50,000 contents coverage (per building) for just $567 per year.
• Business owners who lease their space can purchase $50,000 contents coverage for just $162 per year.
• To qualify for a PRP, the property must be located in a moderate-to-low risk zone.

I need an Insurance Agent in Richmond

Contrary to what you may believe insurance agents in Richmond are in high demand. Why?

Information over load and lack of knowledge. This is oxymoron, I know, but it's true. Today there is more information at our deposal then ever before; however, most people don't understand insurance.

Most people don't want to pay any more than they have to and they want to make sure they have the coverage they need. Knowledgeable insurance agents will help filter through what you need and what you don't need. The problem is there are very few true insurance agents in Richmond.

It may seem like there's an insurance agent on every corner and you certainly can't turn on the TV or radio without seeing or hearing an insurance commercial. The realty is most of the insurance agents you see or hear are not true agents. They are sales rep's for their prospective companies.

The difference between and insurance agent and a sales rep is simple...an insurance agent works for you, not the insurance company. An insurance agent provides options from several companies, not just one. These agents, also referred to as independent insurance agents, represent several companies and they can help you find the best policy in Richmond.

If you have a policy with State Farm, Allstate, Nationwide or Geico you are working with a sales rep, not an agent. These sales reps can only offer 1 company product which may or may not be what you need.

The demand for independent agents in Richmond is at an all time high so the next time you review your insurance make sure you speak to an independent insurance agent.

Grandfathered Insurance Policy

If you've had the same insurance policy for several years you may have what's commonly referred to as a grandfathered policy. Grandfathered policies are older policies, no longer offered to the general public.

These policies typically provide more coverage and have special features such as guaranteed renewability and lower deductibles. If you live in area that is now considered "high risk" (examples: coastal property or homes located more than 5 miles from the fire department) or the type of home is uninsurable (examples: mobile home, log home ect.) double check your policy before switching to another company. You may be giving up very valuable coverage without even knowing it.

Insurance Library

Have you ever had a question about insurance but you weren't sure who to ask?

Insurance Library was recently launched to help fill this need. Insurance Library is an online community of licensed insurance agents who will answer any question you have about insurance. Simply submit your question and receive an answer. If you have follow up questions or would like more information you can contact the agent directly.

Insurance library is a great resource so check it out today at www.insurancelibrary.com.

Home Insurance Rates Increasing

Home insurance rates continue to rise throughout the country but there's good news. Several insurance companies have increased their discounts for package policies. If you insure your home and car with the same company chances are you will receive an even bigger discount.

There are 3 major reasons insurance companies want package policies instead of single policies.

1. Retention - customer who have multiple policies stay longer
2. Favorable Claim History - customer with multiple policies have fewer claims
3. More Profitable - more policies = more premium

If you're car insurance is with a direct company such as Geico, Esurance, Direct ect...and you own a home chances are you are paying more than you would if you package the policies together. Even if your car insurance is a little more the over all package is usually less.

For a free insurance quote visit our website www.theandrewagency.com or call (804) 320-2886.