Name That Term

ANCHOR LEAD
IF DISASTER STRIKES... AND YOUR HOME IS DESTROYED... WOULD YOUR INSURANCE PAY TO PUT EVERYTHING BACK THE WAY IT WAS? DON'T BE SO SURE. THE TRUTH LIES IN THE LEGAL JARGON IN YOUR POLICY. IT'S IMPORTANT TO KNOW WHAT A FEW OF THOSE TERMS REALLY MEAN. SCOTT HANSON GIVES YOU A HEADS UP!

TRACK ONE Length: 08
KEVIN AND KELLEY PROFFITT ARE MAKING A VIDEO INVENTORY OF THEIR HOME... AND TRYING TO READ THROUGH THEIR HOMEOWNER'S POLICY.

SOT
KEY@: (nats) Kevin & Kelley Proffitt, Homeowners
"The expenses included in the limit of liability that applies to the damaged property..."

TRACK TWO Length: 02
...AND LIKE MOST POLICY HOLDERS...

SOT
KEY@: (nats) Kevin & Kelley Proffitt, Homeowners
"I have no idea what that means."

TRACK THREE Length: 08
THAT LEAVES MANY HOMEOWNERS IN THE LURCH.

SOT
KEY@: :19 Amy Bach, United Policyholders
"It's a crisis, there are WAY too many people after a total loss that are finding themselves without enough insurance coverage to rebuild their home."

TRACK FOUR Length: 08
IT WILL HELP IF YOU UNDERSTAND THREE KEY TERMS. THE FIRST IS "ACTUAL CASH VALUE". TO MOST OF US... THAT MEANS...

SOT
KEY@: (too short to key)Kevin & Kelley Proffitt, Homeowners
"The full current market value."

TRACK FIVE Length: 08
IN FACT... "ACTUAL CASH VALUE" IS LIKE THE YARD SALE VALUE OF YOUR THINGS. FOR INSTANCE- A COUCH THAT COST A THOUSAND DOLLARS NEW... MAY HAVE AN ACTUAL CASH VALUE TODAY OF ONLY 200 BUCKS.
THE NEXT TERM TO KNOW? "REPLACEMENT COVERAGE".

SOT
KEY@: :52 Amy Bach, United Policyholders
"The most misunderstood word in a homeowner's policy is the word 'replacement'".

TRACK SIX Length: 08
REPLACEMENT COVERAGE MEANS BELONGINGS WILL BE REPLACED... BUT ONLY UP TO THE AMOUNT STATED IN THE POLICY. SAY IT COSTS TWO HUNDRED THOUSAND DOLLARS TO REBUILD THE PROFFITT'S HOME... BUT THEY ONLY HAVE REPLACEMENT COVERAGE OF ONE HUNDRED THOUSAND DOLLARS... THAT'S ALL THEY'D GET TO REBUILD.

SOT
KEY@: (nats) Kevin & Kelley Proffitt, Homeowners
"Seriously?"
"That's it?"

TRACK SEVEN Length: 08
THAT'S WHY CONSUMER ADVOCATES RECOMMEND "EXTENDED REPLACEMENT COVERAGE". IT'S A CUSHION OF ADDITIONAL INSURANCE THAT'LL COVER EXTRA REBUILDING COSTS YOUR POLICY WON'T.

SOT
KEY@: 1:24 Amy Bach, United Policyholders
"Your home is your biggest asset, so you want to be sure you're fully covered."

STAND-UP CLOSE
YOU CAN BE SURE YOU'RE COVERED BY TAKING TIME TO REVIEW YOUR POLICY WITH YOUR AGENT EACH TIME IT'S UP FOR RENEWAL. FOR HEADS UP... I'M SCOTT HANSON.

ANCHOR TAG
EXPERTS ALSO RECOMMEND CONSUMERS HAVE COVERAGE TO PAY FOR RENTING ANOTHER HOME FOR AT LEAST TWO YEARS WHILE THEIR'S IS REBUILT. THAT'S CALLED "LOSS OF USE COVERAGE" OR "ADDITIONAL LIVING EXPENSE".

SOURCES

Amy Bach
United Policyholders
Oakland,CA
(415) 713-3048
info@unitedpolicyholders.org

Ms. Bach is an attorney and executive director of United Policyholders, a non-profit policyholder advocacy group. The organization was formed in 1991 to teach consumers about all aspects of insurance.