One of the biggest concerns for customers in regards to any insurance policy is potential for rate changes. However, in some cases these changes can have your best interest at heart, specifically regarding home owners insurance.
There are multiple factors as to why one’s insurance rates can change. For example, filing a claim or having an influx of claims filed in your neighborhood. This sort of activity can cause rates in a specific area to be adjusted in order meet the payout demand generated in that area. However, inflation guard is a change that occurs on your policy that often goes unnoticed but is designed for the best interest of the client.
Inflation guard is built into a home insurance policy to protect the reconstruction value of the property and ensuring the home is rebuilt at today’s standard. While the inflation guard is not offered by all insurance companies, those that do provide this service generally experience slight cost fluctuations on an annual basis. These fluctuations are a direct result of changing material and labor costs that apply to have a home reconstructed.
Essentially, the inflation guard coverage is providing homeowner’s the ability to make sure their home is completely rebuilt without experiencing the pitfalls of market inflation. Imagine the amount of stress that is caused after seeing your home completely destroyed. Then imagine the disappointment of not having your home rebuilt as it was before because there was simply not enough coverage after years of material and labor inflation. Frustrating to say the least. But this is exactly why some home insurance companies, Allied included, find it more beneficial to include the inflation guard for homeowners. While inflation guard can adjust your annual home insurance cost as a result of the additional coverage, most would agree it is better to be safe than sorry. After all, home insurance companies are there to protect the “what ifs” in life. Inflation guard is an often unnoticed, but important way to protect your largest asset while making sure you can get back normal!
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Allied Insurance at The Insurance Loft
1630 Welton St. Ste. 202
Denver, CO 80202
1 (888) 688 1446