Just What Does Your Motorcycle Insurance Cover? – Part II

August 15th, 2007 by Brad C

Yesterday we talked about Physical Damage Coverage, including comprehensive, collision and custom parts coverage.  Today we will expand that discussion to include Loss Settlement.

Loss Settlement
Whether you own a stock Sportster or a complete custom ride, understanding what type of loss settlement is defined in your motorcycle insurance policy is critical.  Loss settlement is how the value of your motorcycle is determined in case your bike is irreparably damaged or stolen and never recovered.  Usually the type of loss settlement in your policy is based on the motorcycle being insured.

There are three types of loss settlement - Actual Cash Value, Agreed Value, and Stated Amount.  Actual cash value uses a third party, like Kelly Blue Book or the N.A.D.A. guides to determine your settlement; this is generally used for mass-produced motorcycles.

Stated Amount settlements are based upon a settlement amount you chose during the insurance quote process.  Settlements are based upon either that amount or a stated value from N.A.D.A. or Kelly Blue Book, whichever is less.  They’ll charge you a deductible too!

If you have a custom or classic motorcycle, and you agreed upon a settlement amount when you bought your policy, then you have Agreed Value coverage; in the event of loss, that is the amount you’ll receive.  In this case there is no deductible.

Knowing the type of Loss Settlement you have can make the difference between replacing your motorcycle or just wishing you could if something happens.  Make sure to identify which type is offered in any policies you consider.  Progressive Insurance offers some great motorcycle policies, and you can start the free quote process through this site.

Ride Hard, Ride Fast.

Listen to Just What Does Your Motorcycle Insurance Cover? – Part II
Listen to Just What Does Your Motorcycle Insurance Cover? – Part II

Posted in Insurance, Motorcycle Insurance | 2 Comments »

Time for a Home Insurance Check-Up?

August 5th, 2007 by Jeannine C

When was the last time you checked-up on your home owners insurance policy?  If it has been more than a year, its time!  Here are some questions to ask your insurance company about your policy.

Do I have adequate coverage on my home and contents?
If building costs have increased in your area, or you have added to your house, like putting on a deck or adding a room addition, your home could be underinsured.  Home insurance is usually based on “replacement cost,” so if your policy is valued at too low of an amount, you could be in trouble in case of a total loss.

Your homeowners insurance policy also covers your personal property, like clothing, furniture, appliances, and the myriad of other items inside your house.  Unless your policy has a provision to adjust for inflation, you will want to make sure that the coverage is sufficient to replace all that you own.  Special high-ticket items, like computers, cameras, jewelry, or valuable collections may require an additional rider and premium to be included on your policy.  So if you finally bought that 1952 Mickey Mantle card, make sure your insurance company knows about it!

Is my coverage based on Replacement Cost or Actual Cash Value?
Replacement Cost is the actually cost to completely repair or replace your house and your belongings without deducting for depreciation.  Actual Cash Value also replaces lost items, but includes depreciation as a factor, so if something were to happen, you may not receive a large enough payout to buy everything you need.  Replacement cost is slightly more expensive than Actual Cash Value, but in this case, it is worth the extra dollars.  Either way, there usually is a limit to the total amount your insurance company will pay, so make sure it’s enough!

Listen to Time for a Home Insurance Check-Up?
Listen to Time for a Home Insurance Check-Up?

Posted in Home Insurance, Insurance | No Comments »