NYC Insurance Blog

Does Your Insurance Reflect Your Current Lifestyle?

It is evident that recent global events changed our work and daily routines. With curfews and lockdowns, most people worked from home, changed their living and working situations and, above all, their lifestyle. While this might seem obvious, most people do not know that life changes can affect their insurance needs. To determine whether your insurance needs adjustments, here are a few questions you should consider:

Have You Changed Your Primary Home?

You can change your home physically, i.e., moving from your primary residence/home to your vacation home. You should contact your insurer if you live permanently in your secondary residence (weekend getaway or vacation home). Typically, secondary residences have limited insurance coverage because they have fewer items/belongings, and the owners rarely spend time there. Therefore, talk to your insurance company to protect your belongings and loved ones. Discussing changes with an insurance agent, will help determine the amount of insurance you need!

You need to contact your insurance company if you have made significant home improvements. Any upgrades, for example, landscaping, bathroom and kitchen renovations, roof repair or replacement, should be reviewed by an insurance agent or broker. Any changes made to your home should be included in your insurance policy to guarantee full protection in case of an accident or unforeseen event.

Does Your Insurance Policy Include Replacement Cost Value (RCV)?

Most insurance companies use either replacement cost value (RCV) or actual cash value (ACV) to determine the value of the insured property. Replacement cost value and actual cost value refer to the coverage options available to homeowners. Understanding your policy coverage options and the protection you receive in each option is crucial.

Replacement cost value refers to the cost of replacing whatever is damaged at today’s cost. Therefore, RCV refers to the amount of money needed to repair your home or replace an asset at today’s cost (current worth) without factoring in depreciation. Actual cash value refers to the cost of repairing or replacing an asset minus depreciation cost at the time of the loss. Therefore, the actual cash value is the market value of an asset or item.

The replacement cost value is the best choice because it provides extra protection against labor and material cost increases. RCV gives homeowners peace of mind because it restores or replaces their homes or assets to what it was before the covered loss occurred.

Do You Work from Home?

If you or one of your family members works from home, you should review your insurance policy. It is essential to insure your work equipment because it can be stolen or damaged. Talk to your employer and insurance agent to determine the best way to protect the work equipment. It is challenging to determine the type of insurance you should purchase if you work from home. Talk to your insurance agent to get the best coverage if:

• You use your car to conduct company business
• You invite clients to your home
• You use company equipment at home
• You use your own equipment while working from home

An experienced insurance agent can help you get the best coverage at an affordable cost.Call NYC Business Group Today for a Quote.

Have You Inherited or Purchased Valuable Items?

If you have any valuable items, for example, jewelry or art, you should inform your insurance partner. You can purchase a rider to supplement your homeowner’s insurance if you own valuable items. Anything can happen, and if you have not insured any valuable items you inherited or purchased, you can incur heavy financial losses. Consult your insurance agent to determine how to protect your valuables if damaged or stolen.

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