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Hugh Purvis received his bachelors degree from Randolph Macon College and is a proud employee of RCM&D. As an experienced insurance producer Hugh always keeps his clients best interest in mind. He understands buying a home can be a confusing process the first time around. Hugh's goal is to break down the coverage to its simplest form so you can truly understand what you are getting in your homeowners policy. Too many insurance agents don't take the time to evaluate and understand the client. When this is the case you get a basic policy that may not fit all of your needs. However if you have the proper coverage and protection in place you can ensure that a loss won't affect your future.

To speak with Hugh please call 443-921-3813 or by email hpurvis@rcmd.com

Website: http://www.rcmd.com/cs/insurance/personal_insurance

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1. Replacement Cost
   2 Forms of Replacement cost in a HO-3 policy
• The 1st involves how contents are covered at the time of a loss. This is important to have b/c it helps you get true value for your belongings without depreciation being applied.
• The 2nd deals with how your house is covered. This is one of the most important features of a homeowner's policy b/c it dictates how your home will be covered at the time of a loss. (you can get extended R.C. from 25% – 100%) When done properly it insures that your home will be built back to its original form. Most clients assume the insurance company is making gradual adjustments over the years to reflect inflation but a lot of the time it's not enough.
• One way to stay on top of this is to report any major additions or renovations done to the house over the course of a year.


2. Valuable Collections
   
• As you may know a mainstream HO-3 policy provides coverage for jewelry, art, silverware, furs and other collectibles. However this is usually limited to $2,500 and subject to a deductible.
• For some clients this coverage is inadequate b/c they typically have very large collections that range in value and are difficult to track. These families should be with a specialty agent and carrier that have the capabilities to track items and build safety nets into separate valuable articles policy.
• By safety net, I'm referring to blanket & schedule combination policies. Some items need to be scheduled individually so there true value is represented and some smaller items are better represented as a large group.
• FFIC, Chubb and AIG will actually provide your client with coverage up to 150% of the agreed amount to account for escalating market values.

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The reason it's important to review your coverage yearly is so you can stay ahead of the economic curve.

A prime example of this is when Hurricane Katrina hit the coast in 2005. Because of rebuilding efforts from catastrophes like Katrina the cost of raw material increased tremendously all around the globe.

Over past 2 years alone, lumber, drywall and copper piping have all increased more than 20%

According to Marshall & Swift (supplier of building cost data and valuation tools) construction costs nationally have consistently out paced inflation, with a hike of 16.8% from 2002 to 2005.

You may ask why is this important for your client to understand this? It's simple really (Katrina example):

-had loss 6 months after Katrina they may find themselves underinsured due to the construction cost increase. To build home initially has now increased 25% leaving there initial R.C. inadequate.

The bottom line is generally your biggest investment in most cases is your home. By having the proper coverage and protection in place you have ensured that a loss won't affect your future.

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