When questions about their property deductions are submitted, most will laugh at it.
"I know that there is a deduction, of course." Anyway, what kind of idiat are you? "
Well, I am surprised. Many people assume that they know what kind of deductions they have along with their property policy. However, in states like Texas, the natural storm is common, so the amount related to the deductible amount does not apply to people living outside the state.
Example question - Do you know the answer?
Q: You do not live in Texas, but you have property. You have a 5% deduction amount in connection with the $ 500,000 premium of your building in Austin, Texas. The building has been damaged by hundreds of thousands of dollars from hurricanes. How do you account for your 5% deduction in relation to the amount the insurance company pays you?
1. Is the insurance company paying you $ 95,000 (5% of the invoice amount)?
2. Does it refund you $ 75,000 (5% of the total value of the property)?
If # 1 is your answer, you have lost the test! An appropriate response will be # 2!
Unlike most states, in Texas, a 5% deduction will be returned to the total amount of property. This is also called TIV.
People living elsewhere Austin, Dallas, Houston, San Antonio, Irving, or Texas Mother Nature causing Cyclone's devastation are better aware of the deductions and relevance to the total value of property owned . Therefore, the average Texan probably had selected option 2. Because of the widespread damage and damage due to heavy wind storms, the insurance company has been trying to pool damages liability together with property insurers,
How about a big loss scenario?
Examples of deductible buildings in case of windage damage:
• Buildings are valued at $ 5 million
• There is a 5% deduction
• You are not covered by $ 250,000!
Example of an apartment complex deduction incorporating three buildings in case of wind damage:
• Your real estate has 4 strips each of 10 residences worth $ 500,000, each equivalent to a total of 2 million dollars
• 1 strip is destroyed from the storm and 5% deduction
• You are not covered by $ 100,000!
Lessons from this story
If there is something the real estate owner can learn from the above, it is to use an independent and reliable independent insurance agency service that understands your policy and leads you in the right direction.
