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EDISON BLOG

Category: Claims

How Much Personal Property Coverage Do I Need?

 
Last Updated: March 1, 2020

 

 

Choosing the right personal property insurance coverage can be a challenging task. It’s important to ensure your policy will sufficiently cover the value of your belongings.

 

The Difference Between Actual Cash Value and Replacement Value

Although actual cash value and replacement value both relate to the coverage you receive for damaged personal property, they function in significantly different ways.

 

Replacement Value

Replacement value is the cost of replacing an item with a brand-new item. So, if your TV is stolen, the replacement value would be enough to purchase an equivalent, brand new model at the store.

 

Actual Cash Value

Actual cash value is determined based on the replacement cost minus the depreciation of a damaged or stolen item at the time of the loss.

For example, if a 5-year-old TV is replaced at actual cash value, the payout would be equivalent to the price of another 5-year-old TV rather than the price of a brand new one. This may be significantly less money than would be required to purchase a brand-new TV from the store.

This is because over time the value of nearly everything declines. Your furniture begins to wear after many years of binge-watching and game days, the TV begins to flicker, and your computer doesn’t run as fast as it used to.

 

Which is better?

Neither type of insurance is better than the other. Actual cash value insurance will be the best coverage for some, while not for others.

With replacement cost insurance you’ll receive more payment in case of damage or theft, but the downside is you’ll also be paying more in premiums. With actual cash value insurance, you won’t be paid as much for stolen or damaged items, but you will save money on premiums.

The right type for you depends on the value of your personal property and what you’re willing to pay.

 

Homeowners V. Condo Owners Insurance

Homeowners usually have less control over their personal property coverage. Their coverage typically amounts to half of their policy’s dwelling coverage limit. For example, if your dwelling limit is $300,000, then you will have $150,000 in personal property coverage.

Condo policies usually allow for more control when selecting a personal property limit. The allowed will vary depending on the insurer.

 

Understanding Sub-limits

Understanding your insurer’s sub-limits is key to buying the right coverage. For example, you might have $100,000 in total coverage but only be entitled to a smaller, fixed amount for an individual item.

Common sub-limits on personal property insurance include:

•             Cash and gold: $250

•             Furs and precious stones: $1,000

•             Home-based business property: $2,500

•             Silverware: $2,500

•             Firearms: $2,500

When the value of an item exceeds your insurer’s sub-limit, consider scheduling the item by listing it directly in your policy. Scheduling an item separately with your insurer will mean it’s protected for its entire value. This will slightly raise your premium, and an appraisal or detailed description of your possession may be required.

 

Now with a good grasp on personal property insurance, it may be time to consider purchasing coverage or updating a current policy. Edison Insurance Company can customize your policy to fit your needs. Call us at (866) 568-8922 to get a free quote.

 

What is a Covered Loss?



 

Your homeowners insurance policy consists of coverages which may help in repairing or replacing your home and belongings should they be damaged by certain perils, such as a windstorm, fire, or theft. Each insurance policy is different, and it is imperative you understand what your policy covers in the event of a loss.
 
The easiest way to determine the difference between a covered loss and a maintenance related issue is to remember the general principles which govern an auto insurance policy. Auto carriers provide coverage in the in event of an unexpected or accidental event, not the general wear and tear associated with daily use such as; tires, brakes, and oil changes. For instances, should a pipe in your home leak for months, resulting in major water damage, the loss will not be considered a covered loss, as it was not accidental or unexpected.
 
In many cases, taking measures to prevent further damage can save you time, effort, and money. Take some time to inspect your home and make repairs to effectively prevent further damage. Should you wish not to partake in routine maintenance yourself, several companies offer maintenance repair contracts for your home and appliances.
 
Remember, your homeowners insurance carrier may deny a claim if damages were caused by lack of maintenance or wear and tear. Therefore, it is crucial for you to report damage to your property the moment it presents itself and to not wait until the problem becomes worse. Should a claim arise, report it to Edison Insurance Company immediately by calling 888-683-7971.
 
 
 
The safety of you and your family is Edison Insurance Company’s top priority. Our mission is to provide quality coverage at competitive rates while providing exceptional service. For more information on homeowners insurance in Florida, or to get a quote, call us at 866-568-8922. 

Hurricane Irma Aftermath: Beware of Fraud


 
After natural disasters, such as Hurricane Irma, it is not uncommon for fraudulent schemes to pray on those experiencing a loss. Therefore, Edison Insurance Company is urging our policyholders to call us first to protect themselves from fraud.
 
Should you have been affected by Hurricane Irma, please be weary of contractors going door-to-door to solicit repair and cleanup services. These contractors may be out-of-town “storm chasers” who may not have the proper licenses to make the repairs they promise to deliver. There is a high probability Assignment of Benefit (AOB) forms will be offered to policyholders from these contractors soliciting business or making emergency repairs. When an AOB form is signed by a homeowner, they are assigning their rights under their homeowners insurance policy to the vendor, and allowing all payments to be made directly to the vendor for their repairs.  The issue we continue to see throughout the state is AOB fraud, where crooked contractors and lawyers inflate the cost of repairs, charge a fee for handling the claim, and commit insurance fraud. At times, these repairs are not completed and the homeowner must pay out of pocket to finish the repairs, since the contractor has already collected all the money from the insurance company.
 
While we understand the temptation to aid in the recovery process by beginning repairs to your home as soon as possible, please do not sign any forms without speaking with Edison Insurance Company or your agent. Our claims representatives are here to assist you. Please report your claim by calling 888-683-7971.
 
If you suspect fraud, please report it immediately to the Department Financial Services at 877-693-5236. To report suspected fraud on an Edison Insurance policy, call 888-683-7171 (Option 4) or email REPORTFRAUD@EDISONINSURANCE.COM.
 
Allow Edison Insurance Company to shine our light on you and your family by insuring your home, condominium, and precious belongings. Should the unexpected occur, you will be our focus while we restore your home. To learn more about Edison Insurance Company, please give us a call for a home insurance quote at 866-568-8922 or visit our website.

Quick Steps for Hurricane Prep


Know Your Seasons & Prepare!
 
Floridians should always be on their “A-game” during Hurricane Season. Make sure you have the proper tools to survive in case a hurricane strikes. Even though we have hurricane predictions at the start of the season, we can never be too prepared. Click here for a list of items you should have at the start of hurricane season and how to ready yourself. Don’t forget to make a hurricane food shopping list for you and your family!
 
Make a Solid Evacuation Plan
 
Sit down and have a conversation with your family and be sure the younger household members understand it.
 
Don’t Forget Your Furry Friends
 
Your pets should always be included in your emergency plans. The ASPCA provides stickers which will alert rescue personnel, pets are inside your home. This sticker could potential save your pets’ life, if they are trapped during a disaster. Preparing a travel kit and emergency supplies will make the process much smoother when transporting your pets in the case of an emergency.
 
Listen to Authorities
 
One thing you should never do is ignore updates or instructions from local authorities. Chances are, if they’re telling you to evacuate, it’s for your own safety. If you do evacuate, return home only when officials advise it is safe to do so, and continue to listen for further updates.
 
Inspect Your Home
 
You should always conduct a full inspection of your home before, and after, a hurricane. Taking photos is a sure way to keep track of damage, and even better for filing a claim with your insurance company. 



Keeping your family and home safe and protected is Edison Home Insurance Company’s number one priority. We have taken a bright and innovative approach to Florida homeowners insurance with coverage options allowing you to customize a policy to best fit your needs. To learn more about Edison Insurance Company, or to get a personalized quote, call us at (866) 568-8922.
 

Preventing Water Damage from Your Washing Machine


 
Washing machines can do a lot of damage if you aren’t careful. A burst in the water supply lines is the cause of many flooding incidents in the home. Here are some simple ways to avoid water damage resulting from your washing machine:
 
Keep it Leveled: If your washing machine is not on a leveled surface, this can cause it to move around because of the vibrations and movements from within, causing shifting and cracks in the water pipes. This can lead to drops of water on the floor, or even a flood. Make sure your washing machine is on balanced, leveled surface.
 
Run Smaller Loads: By overfilling your washing machine, you are at risk of water overflow. It may be easier to wash a larger load at once, but you could also be doing some damage. By running a smaller load, you can also ensure your washing machine will stay put and not be forced to move around.
 
Replace Your Hoses: You should be replacing your water hoses every 2-3 years to ensure they are not wearing out. Most inexpensive washing machine hoses have a rubber casing, which does not give the maximum protection. For better protection, your hoses should have metal casing, which may prevent a very expensive claim in the future.
 
Read more on common homeowner claims you can easily avoid.


Thank you for visiting our blog. Hopefully, you came away with some great home insurance and safety tips. Edison Insurance Company’s mission is to provide quality coverage at competitive rates while providing exceptional service.  For more information on Florida homeowners insurance or to get a quote, please call (866) 568-8922.
 
 

3 Common Homeowners Claims You Can Easily Avoid


 
Homeowners claims come in all shapes and sizes. Most of them, however, are easily preventable. Here are 3 common homeowners claims you can avoid when it comes to water damage and how:
 
Caulking: Inspect your home’s bathrooms and sinks for chipped or peeled caulking. This can lead to water damage, eventually turning into mold if ignored. Make sure your caulking is applied smoothly and air tight with no signs of openings. Click here for DIY instructions on how to caulk.
 
Water Heaters: Be sure to check the warranty on your home’s water heater and check periodically for any signs of leakage or corrosion. If your water heater is near a carpeted area, it may be difficult to spot. Check the carpet for any signs of dampness or wet smell. Water on the floor is a clear sign it is time to replace or repair your water heater.
 
Metal Cased Washing Machine Hoses: Most inexpensive washing machine hoses have a rubber casing, which does not give the maximum protection. For better protection, your hoses should have a metal casing, and the hose should be replaced every 2-3 years. By conducting routine maintenance, you can prevent a very expensive claim from occurring in the future. Read more on how to prevent water damage from your washing machine.
 

Keeping your family and home safe and protected is Edison Home Insurance Company’s number one priority. We have taken a bright and innovative approach to FL homeowners insurance with coverage options allowing you to customize a policy to best fit your needs. To learn more about Edison Insurance Company, or to get a personalized quote, call us at (866) 568-8922.