Property Insurance Questions and Answers.
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Replacement Value of the Property. |
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This can be done by one of the following:
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Valuation Report – recommended choice |
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Checking with realtors for current replacement values – as a guide only |
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Checking the Master Builders’ Association for current rate per square foot then calculate based on sq. ft rate x size of building – as a guide only |
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The Exact Address, including lot or street number, and be able to give directions for rural areas. |
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Materials of which the building is constructed. e.g. Reinforced Concrete wails and Shingle Roof |
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Permission in the form of a Power of Attorney or Agent Authorisation if you are not the Owner of the Property. |
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Your responsibility is to insure your property for its full replacement cost. When you do not do this and insure for less than the replacement value, we consider that you have “self insured” the difference. If there is a claim, we share the cost of the claim with you in the same proportion that you have self-insured. That is, if you have insured for 50% of the value, then you have self-insured the other 50%. When you have a claim you are responsible for absorbing 50% of the claim and we pay the other 50%, less the policy excess.
WE DO NOT RECOMMEND THAT YOU SELF INSURE,
as the application of the average clause can be detrimental to
your ability to recover after a loss. Please note this
is a standard policy condition affecting all property
policies in Jamaica and most of the Caribbean
OR (is this explanation any simpler
to you?)
A proportionate sharing of the cost
of your claim when you insure for less than the replacement
cost of the item.
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The care, skill and control
that you exercise over your vehicle will impact significantly
on your accident record. You have far more control in
determining your outcome. Property owners do not provide
the same level of control over Acts of God, and acts
of criminals. The No Claim Bonus is therefore offered
to encourage careful and defensive driving and to help
to reduce the high frequency of claims.
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You can insure any item you may consider
of value for example:
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House |
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Contents |
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Building under construction |
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Computer |
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There are several benefits to you
which include:
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Protection against claims arising from Legal Liabilities (Employers, Public and Personal) |
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It is a Legal Requirement for Mortgage and
Lein |
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A means of Financial Compensation |
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Transfer of risk which results in better security, peace of mind and quick recovery from a loss |
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Insurance is normally sold to the owner or authorized agent of an item.
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| Q. |
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| Home Owner’s
Policies |
| Fire |
No Excess |
| Burglary |
Flat $10,000 |
| Windstorm, Earthquake, Flood, Hurricane |
2% of sum insured |
| Burst Pipe |
$10,000 |
| Impact/Collision |
$10,000 |
For example:
| House Insured for $6,000,000 |
| Loss by Hurricane amounting to
$400,000 |
| You absorb $120,000 |
| Excess is 2% of S.I. or $120,000 |
| NEM pays $280,000 |
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To reduce the cost
of insurance. |
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To protect your asset by ensuring
you exercise due caution, bearing in mind that you
will have to cover some costs. |
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The rates and terms imposed by re-insurance companies |
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The claims experience in Jamaica, the Caribbean & internationally. |
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The location in which the property is located. |
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Whether or not the area is subject to social unrest, flood prone or other adverse exposures |
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The type of construction. Eg. Roof and walls |
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The clients previous claims experience |
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