What is the difference between “replacement cost” and “actual cash value?”
Replacement-cost coverage pays to replace your home and belongings with materials of "like kind and quality" at current prices. Actual cash-value policies reimburse the depreciated value. A replacement-cost policy will usually cost a little more. Some companies no longer offer replacement-cost coverage.
Why didn’t I get a notice that my policy was canceled?
Your company must send you notice at least 10 days in advance of your policy being canceled because you have not paid your premium. This may be a late billing notice. If your policy has been "nonrenewed" (the company is not continuing to cover you for a reason other than nonpayment), the company must give you at least 30 days' notice.
Why didn't my insurance pay to replace everything I lost?
Most homeowner policies have dollar limits on certain belongings, such as silverware, guns, jewelry, watches, furs, and computers. Talk to your agent or insurance company about increasing these limits to meet your individual needs.
Why didn't my policy pay for slow leaks, dry rot, and pests?
Generally, insurance policies exclude damage caused by seepage, dry rot, or pests. This is because these problems are usually the result of poor maintenance, not a "sudden and accidental" event. Insurance companies may cancel your policy if your property has deteriorated to a point that it no longer meets the company's underwriting standards.
Why didn't the insurance company pay the appraised value of my loss?
The appraised value of your property is the value when the appraisal was made. Your property may have lost value since your last appraisal as a result of poor maintenance or depreciation.
Can insurance companies deny me coverage based off of what type of dog I have?
Yes. Dog bite claims can be quite expensive, and some insurers choose not to provide insurance to homeowners who own a breed with a history that suggests a dog bite claim is more likely.
Will my home insurance pay for damage from a landslide?
No. Homeowner policies do not cover damage caused by earth movement. Earthquake coverage is available for an additional premium. Even though there is specialty coverage available for landslides, it is expensive and difficult to find.
Will my home insurance cover the classic car that I keep garaged and do not drive?
No. Homeowner policies usually do not cover motor vehicles. If you have a collector car you want covered, you will need to get a policy from a specialty insurer.