Governmental & Institutional
Frequently Asked Questions
Typical Questions That Arise After Suffering a Loss
Establishing the proper Replacement Cost for the buildingReplacement cost means, how much it would cost for you to replace the item today that was damaged, with like, kind and quality. But, what if you cannot replace an item that was damaged (ie. Historic buildings, antiques, items that are no longer in production)? How is a monetary value determined for those items?
How do you establish the correct Actual Cash Value?Actual Cash value can equal the Replacement Cost minus Depreciation…this is why determining the proper Replacement Cost is extremely important. It can also mean a "broad evidence" approach to market value, as well as other factors. A state-by-state review is important.
Insurance Limits and Under-insured?Insurance limits vary greatly depending on your policy. Within a typically policy there are a number of Endorsements that may be added, that could raise your recovery limit in excess of the policy limit stated with your Declaration Page.
Is debris removal extra and in excess of my policy limit?Debris removal is the necessary expense to clean-up/remove debris after a covered peril.
Depending on your policy debris removal may be included within your policy limit, or you maybe entitled to recover in excess of your policy limit. Having an knowledgeable professional review your policy and explain your coverages could be one of the best decisions you make….NFA offers this review at absolutely No Cost or obligation.
Do I have inflation guard?Inflation guard is a provision that can automatically increase coverage limits periodically throughout the term of the policy. It is often computed by a specific formula.
Do I have Increased Code of Construction coverage, due to building codes and ordinances?Code Coverage can be added to your policy, but is not always included within a standard insurance policy. If you suffer a loss and are now required to bring your building up to code (electrical/sprinkler system handicap access), your insurance may cover these additional costs, but limitations may apply.