3 Reasons to Make a Home Inventory

As a homeowner, you may cringe at the thought of making a home inventory due to the time and effort involved. A home inventory, however, can be a lifesaver if you were to suffer a major loss in a disaster. A home inventory is a practical means of documenting your personal possessions. By taking photos or videos of pricey items and collecting receipts, you can prove ownership of these goods and verify their value. If you’re still not convinced a home inventory is worth your time, the following reasons may change your mind.

Accurate Insurance Coverage

A home inventory will make it easier for you to choose accurate insurance protection for your personal belongings. This can help reduce home insurance costs. After reviewing your list, an agent from 1st American Insurance Agency will have a better idea of what kind of personal property protection you need so you don’t waste money on useless coverage.

Simplify Filing a Claim

A home inventory can simplify filing a home insurance claim if and when the need arises. If a fire or natural disaster ravages your Longmont, CO home and destroys most of your personal goods, you can simply refer to your list to see what you have lost. You don’t have to rely on memory to claim loss of personal property as you’ll have an accurate account of your goods to include photos and receipts as proof of ownership and value. This will take the stress out of making a claim after a disaster.

Verify Financial Loss

When you file your tax return, your home inventory can come in handy to verify your financial loss. It may also help you get financial assistance, if needed, after a disaster.

For help in selecting home insurance coverage, contact 1st American Insurance Agency in Longmont, CO.  

Will Auto Insurance Fully Replace Your Totaled Vehicle?

Sometimes, a car accident in Longmont, CO can lead to a totaled vehicle. When your car becomes a total loss, you’ll likely want to know what your insurance company will do about it. The answer can vary depending on your coverage options from 1st American Insurance Agency.

What Is a Total Loss?

Your insurance company will determine if your vehicle is a total loss or not. The term totaled doesn’t necessarily mean the car no longer works or cannot receive repairs. If the repair costs for the vehicle are more than the fair value of the car before the accident, it’s a total loss.

Who Pays for a Total Loss?

After the total loss designation, fault comes into play. If you’re not the at-fault driver, then normal insurance rules will come into play.

The at-fault driver’s insurance will pay out up to their coverage limit to pay for damages. If the driver’s policy limit isn’t enough, you can try suing the driver directly as well. In this case, a full car replacement will depend entirely on the other person’s insurance coverage options.

If you’re the at-fault driver, your insurance will only cover replacement if you have coverage options in place for it. For example, collision coverage can pay for a replacement or give you the cash value of the car.

Why a Total Loss Can Become Complicated

The main issue with total loss replacements is that they can grow quite complicated. For example, if you’re leasing or still paying for the car, compensation for the total loss can go back to the lender.

If you don’t have the right amount of collision coverage or another type of insurance coverage that calls for a replacement car, you can receive compensation but not enough to actually replace the car.

If you want an insurance company to fully replace your car in Longmont, CO, you need to discuss the process and what you need beforehand. Contact 1st American Insurance Agency to learn more about our collision coverage and other options to ensure you can replace your car if it’s a total loss.