Homeowners insurance is a must for anyone who owns a home in New York or Pennsylvania. One of the most important concepts to understand is the 80\/20 rule\u2014a basic principle that applies to all homeowners’ insurance policies. So, what is the 80\/20 rule in homeowners insurance? AW Burchell Agency Inc. is here to assist with all your queries.<\/p>\n
The 80\/20 rule is a basic concept that applies to all homeowners\u2019 insurance policies. It states that insurers will only pay out up to 80% of a claim\u2019s cost after it has been approved. This means that if your claim costs $10,000, you will only be able to receive $8,000 from your insurer. You must pay the remaining 20% of your claim.<\/p>\n
The easiest way to understand how the 80\/20 rule works is by looking at an example. Say you have an insured event, and the total claim amount comes out to $10,000. Your insurer approves the claim, but since it is subject to the 80\/20 rule, they will only cover up to $8,000 worth of repairs and replacements. You are then responsible for covering the remaining $2,000 out-of-pocket or through other sources, such as savings or investments, if you don’t have enough cash on hand or available credit on your credit cards.<\/p>\n
The good news is that there are some exceptions when it comes to the 80\/20 rule in homeowners’ insurance policies in New York and Pennsylvania. Additionally, some insurers will provide coverage for 100% of certain types of claims, such as liability claims.<\/p>\n
In short, the 80\/20 rule states that insurers will pay up to 80% of approved claims while leaving 20% to homeowners. Still have questions? Contact AW Burchell Agency Inc. today.<\/p>\n","protected":false},"excerpt":{"rendered":"
Homeowners insurance is a must for anyone who owns a home in New York or Pennsylvania. One of the most important concepts to understand is the 80\/20 rule\u2014a basic principle that applies to all homeowners’ insurance policies. So, what is the 80\/20 rule in homeowners insurance? AW Burchell Agency Inc. is here to assist with […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[16,13,14],"class_list":["post-8","post","type-post","status-publish","format-standard","hentry","category-home-insurance","tag-aw-burchell-agency-inc","tag-new-york","tag-pennsylvania"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.burchellagency.com\/blog\/wp-json\/wp\/v2\/posts\/8","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.burchellagency.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.burchellagency.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.burchellagency.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.burchellagency.com\/blog\/wp-json\/wp\/v2\/comments?post=8"}],"version-history":[{"count":3,"href":"https:\/\/www.burchellagency.com\/blog\/wp-json\/wp\/v2\/posts\/8\/revisions"}],"predecessor-version":[{"id":12,"href":"https:\/\/www.burchellagency.com\/blog\/wp-json\/wp\/v2\/posts\/8\/revisions\/12"}],"wp:attachment":[{"href":"https:\/\/www.burchellagency.com\/blog\/wp-json\/wp\/v2\/media?parent=8"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.burchellagency.com\/blog\/wp-json\/wp\/v2\/categories?post=8"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.burchellagency.com\/blog\/wp-json\/wp\/v2\/tags?post=8"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}