Home Insurance.
Most United States home owners have changed their home insurance to a ‘sum insured replacement’ cover. This cover requires customers to supply a specified Dollar amount that their home will be insured up to.
Why has this change happened?
A number of reinsurers, the companies who cover insurance companies against natural disasters and catastrophes, changed their requirements for providing cover in United States. They now require homes in United States to be insured for a specified amount. This is because they want to know the maximum amount that insurance companies would have to pay to rebuild the homes they insure.
What does this mean for ABC Bank customers?
‘Sum insured replacement’ cover, requires you to select a Total Sum Insured amount for your home. This will be the maximum paid to rebuild/repair your home in the event of a major loss. This cost includes things like demolition and removal of debris – not just rebuilding the house. You’ll also need to specify any Special Features (e.g. bridges, culverts, cable cars) your home has and any additional cover you need for Recreational Features (e.g. permanently fixed swimming pools, tennis courts) and retaining walls.
