It used to be that Property insurance paid for losses on an actual cash value (ACV) basis, which means that the insured recovered the value of the property at the time of the loss instead of the time the insurance was purchased. For instance, ACV insurance on a TV set would reimburse you for a used set, not a new one. When a home is insured at ACV, replacing it will often cost more than the insurance pays because its value may have gone up without the insurance being adjusted to reflect that. One way to cover all the bases is to buy Replacement Cost insurance rather than ACV.

Replacement Cost payments for loss of an insured dwelling will be restricted to the policy's limits, so it's important for the dwelling to be insured to at least 80% of its value. If a home isn't insured to this level at the time of loss, recovery will be limited to (1) the actual cash value of the loss up to the policy limit, or (2) the cost of repair or replacement up to a proportion of the loss - whichever is higher.

With Guaranteed Replacement Cost coverage, the homeowner agrees to insure the dwelling to 100% of value and to accept whatever annual increases in premium the insurance company deems necessary to cover the full amount. In return, the insurer agrees to replace the home exactly as it was before the loss. So there's a significant difference between Replacement Cost coverage and Guaranteed Replacement Cost coverage. The latter brings more peace of mind.

Insurance companies offer many variations of Replacement Cost coverage to fit different situations. If your home is rapidly increasing in value, call us to adjust its coverage. And don't be surprised if we call you to recommend an increase in your Homeowners coverage.

The flustered driver ran a red light, caromed off a BMW, and crashed into a Jaguar dealer's lot, smashing a Jaguar XK8 into the two Jags behind it. Police estimated the damage at $200,000. The driver got a ticket for running a red light - and a huge bill.

It doesn't take much to have an accident this spectacular. A split-liability limit of $100/300/25 provides as much as $100,000 for each person injured, up to a total of $300,000 for all injured parties. The "25" refers to the $25,000 limit for property damage - which would he woe fully inadequate in the scenario just described.

Consider raising the Property Damage limits of your Auto policy. A single-limit policy of $300,000 would cover an individual or property damage up to $300,000, with no sublimits. An Auto policy may have a single liability limit or, more commonly a combined liability' limit. Either option has advantages.

As society evolves over the years, so must insurance policies. These changes are led primarily by the Insurance Services Office (ISO), an organization that constructs, alters, and files new or changed policies and endorsements with the states. Many insurance companies use ISO's suggestions, although some others alter policies and endorsements as they see fit. This article applies to Personal Auto policies (PAPs) in many, but not all states. Check with us to see whether it applies to you.

In June last year, a revised PAP became effective in most states. The old policy was a trap for married couples who decided to separate, since insurance tends to be the last thing they're thinking about.

Now if a spouse who is unnamed on the PAP moves out of the family residence, he or she is cove red for 90 days, or until a new PAP is purchased or the original policy expires. Separation or divorce always requires a renew of the couples insurance.

And in light of the increased of vans, leased vehicles, arid pickups in place of private cars, insurers are giving them new attention. Vans and pickups now clearly fit under a PAP, as do autos that are leased for six months or longer. If you rent a non-owned pickup or a van while on a business trip, your Liability insurance probably covers it now

Here's another change: The PAP has modified the exclusion of vehicles with fewer than four wheels. Now in some states, it covers non-owned golf carts for liability - even if people are using it only to ramble around at a county fair.

Although the PAP provides some coverage (maybe $500) for damage to a non-owned trailer, damage to owned trailers, camper bodies, motor homes, and their facilities and equipment is still unprotected.

To insure them, you must notify our agency or the insurance company within 14 days of acquisition. Motor homes require immediate notice.

Coverage for sound-reproducing equipment such as radios, tape decks, CD players, and their accessories has changed considerably. Coverage for damage or theft of this equipment is limited to $1,000 unless it's permanently installed in the place intended by the manufacturer for such equipment.

Thus the CD player set in the spot the manufacturer designed for radios is covered for any amount, but huge speakers installed where the back seat used to he are limited to $1,000 coverage. This limit can be raised by endorsement.

TVs, videotape recorders, and the other electronic equipment that people are bolting into their SUVs and vans will require an endorsement to be covered for damage. Tapes, records, discs, and other media are covered for damage and theft only by endorsement and then only for $200, since they're too susceptible to loss to receive much coverage.

If any of these changes affect you, call our experts on Personal Auto protection.

Simon owns a large, older home on a spacious lot that ends at an alley. Adjacent to the alley are two separate one-car garages, one of which Simon rents to a neighbor for band practice, as well as another building that he used for a workshop before moving his business elsewhere. That building is now rented to an upholster.

Simon always thought that these three buildings were covered under his Homeowners policy. Unfortunately, two of them aren't.

Homeowners policies do indeed cover other structures (such as garages) on the premises unless they're used in whole or in part for business. Thus the building rented by the upholster is not covered. Garages are covered for occupants of the residence, but not when rented to nonresidents for other-than-garage purposes so the garage rented to the band isn't covered, either. The other garage, where Simon parks his car, would be covered should a fire or other peril damage it.

Do you have any questions about what your policies cover? We'll he happy to tell you all you need to know.

Perhaps you're selling your home to try apartment life- or the kids are finally moving out to live in apartments. How can you keep your personal property insured?

A Homeowners policy doesn't sound appropriate for apartment dwellers, but it's the answer. There's a Homeowners package designed for renters. It contains protection against a Liability claim base on negligence, as well as Personal Property coverage. In fact, the only Homeowners coverage that's not incorporated in most Renters packages is protection for the building itself. If you call us to ask more about this kind of coverage, you needn't call it Homeowners if you don't want to; "Renters" or "Tenants" will do just fine!

Underwriting Center
10335 N. Port Washington Rd., Ste. 200, Mequon, Wisconsin 53092-5763
Telephone: 262-478-1000 Facsimile: 262-478-1001 Toll Free: 800-845-4145