Home Insurance Facts Every Homeowner Should Know

As a new homeowner, it’s important you understand the ins and outs of home insurance and the protection it provides. Learning the basics is key to getting the right insurance coverage. At Wellspring Insurance Network Inc. we can explain how home insurance works and answer questions you may have about coverage and costs. Here are some facts you should know before buying a policy for your Frederick, MD home.

Areas to Cover

A good home insurance policy will cover your dwelling, personal goods, liability, and living expenses if you can’t occupy the home due to a disaster. Your coverage should be enough to rebuild your home, if necessary, replace your goods, safeguard you against lawsuits and cover the cost of living elsewhere while home repairs are being done.

Replacement Value vs Cash Value

Cash value coverage pays for the value of personal goods minus depreciation, which may be insufficient to replace your property. Replacement value coverage provides funds to replace everything that’s stolen or lost in a covered peril, saving you thousands of dollars out of pocket. You’ll pay more for replacement value coverage but the protection you receive makes up for it.

Claims Handling

Make sure you understand and agree to how your insurer handles the claims process. Some companies pay for losses upfront; others pay a fraction and make you wait for the rest. Some pay for all personal property losses while others only pay for the items you replace. Discuss the claims process with your insurer before signing on the dotted line.

Extra Insurance Coverage

If you own pricey goods, you may need extra insurance to fully protect these valuables as the limits of a standard homeowner’s policy may not cover what these goods are worth.  

For customized home insurance coverage at reasonable costs, contact Wellspring Insurance Network Inc. in Frederick, MD.

Claiming your totalled car

If you are in an accident and the repairs will cost 75 percent or more of the market value of your car, it will be declared a total loss and called "totaled" by insurance companies in Maryland.  If you have a low-value car you may feel like you can make repairs and keep the car running. It is a slightly complicated process, but you can reclaim your car if it is ruled a total loss by the insurance company Vist the Wellspring Insurance Network Inc. in Frederick, MD to learn more about the intricacies of automobile insurance.

When a car is totaled, the insurance company takes possession of the car as part of the settlement. Often the insurance company will sell it for salvage to recoup some of their losses. If you wish to claim the car you have to notify the insurance agency as soon as possible. They will let you have the car back but will deduct the salvage value from your settlement. 

In Maryland totaled cars are called Salvage vehicles. If your car is not repairable and you want it for parts, you will get a salvage certificate when you take possession. If it is repairable you will get a rebuilt salvage title. There is also a special title for cars that have been totaled due to flood damage. Also as part of the settlement, you will have to get a release from the loan company if you owe money against the vehicle.

Visit the Wellspring Insurance Network Inc. in Frederick, MD to get more information about car insurance. You may visit us online, by phone, or in person. If you do have an accident and want to reclaim your totaled car, remember it is very important to let the insurance company know before they send it to be salvaged.