My home was damaged. What is the difference between the "replacement cost" and the "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 may not offer replacement cost coverage.
Why didn't my policy pay for flood damage?
Flood damage is not covered by most homeowner policies. A separate policy can be purchased through the National Flood Insurance Program. For more information contact NFIP at (888) 379-9531.
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 haven't paid your premium.
The required notice may be in the form of a late billing notice. If your policy has been "non-renewed" (the company is not continuing to cover you for a reason other than non-payment), the company must give you a 45 day written notice that your coverage is ending.
Why didn't my insurance pay to replace everything I lost?
Most homeowner policies have "dollar limits" on certain types of belongings. Generally, these limits are on 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 my water damage?
Most homeowner policies exclude damage caused by water. There are however instances in which coverage is provided. You will need to read your policy and/or discuss the circumstances with your agent or adjuster.
Why did my agent tell me one price for my insurance, but the company is charging me more?
If an agent tells you one price, but your bill is for a higher premium, it could be that a simple mistake was made in processing your application. Check to see if the amounts of insurance, deductible, scheduled items and policy endorsements are the same on the policy and the quote. If you can't find a discrepancy, check with your agent or company to find out if the bill is correct. If the bill is higher than you expected, ask for an explanation. You will probably find there is an honest misunderstanding between you and your agent. These misunderstandings or "misquotes" can happen when the agent does not have accurate information about your property or about what kind of coverage you want.
Why didn’t my insurance company pay the full amount of their estimate for my damage?
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.
If your house or belongings are damaged, your insurance company must pay your property's actual cash value at the time of the loss or its replacement value if your policy provides replacement cost coverage.
I don't have a home business, but I often work from home. Do I need extra insurance?
While homeowners insurance is not designed to cover most business uses of your home, some policies might cover some business uses, at least partially. For example, if you use your home computer or laptop for business, it's often covered. However, you should check your policy limits to make sure. Your laptop might be covered even it is lost, damaged or stolen away from your home.
Most homeowner policies provide a limited amount of liability coverage if you care for a friend's children and are not paid. If you are paid to provide daycare in your home, you must buy more insurance to cover your related liability.
What if my contractor’s estimate is more than the insurance company estimate?
The best way to resolve this is to request that your contractor and your adjuster either meet directly or have a phone conversation to discuss the discrepancies and determine a mutually agreeable cost of repair.
Can the insurance company non-renew my policy after one claim?
Yes but only if they have disclosed to you that filing one claim is a criteria for non-renewal.
What can the Insurance Commissioner do about my premium increase?
At this time the Insurance Commissioner has virtually no regulatory authority over the rates an insurance company charges. Montana is a File and Use state. This means an insurance company is required to file their rates with the CSI and then can begin to charge those rates.
