How do I know if my property and assets are properly covered?

Claims Risk Management over coverage calculations

Premiums are calculated differently for each line of coverage. Different aspects of each coverage line are also calculated using different materials. We are going to look at how we calculate coverage for policies in your homeowner’s insurance, auto insurance, and personal umbrella insurance.


Dwelling – Dwelling coverage is calculated using a Replacement Cost Estimator. This considers the year your home was built, the building material, square footage, and other information to calculate the cost to rebuild your home. Many times, people think their dwelling coverage should be the amount you paid for the home; however, this is not the case. Insurance is meant to rebuild your home to the same condition it was in prior to a covered loss. Your property should be covered for the replacement cost, not the market value.

Liability – As we market your policy, we request the lowest amount of liability with each carrier, while still staying eligible to obtain a personal umbrella policy.

Personal Property – Performing a personal property inventory is essential when calculating this coverage. Many times, this coverage is simply a percentage of the dwelling limit, but to be accurate, we assist you with valuating your belongings, so you are never underinsured.


Liability – As we market your policy, we request the lowest amount of liability with each carrier, while still staying eligible to obtain a personal umbrella policy.

Comprehensive Deductible – What routes do you drive (high risk for cracked windshields or hitting animals)? What is your prior loss history?

Collision Deductible – What are your risks (youthful drivers, history of accidents)? If you have minimal prior losses, it may make sense to carry a higher deductible to reduce your premium.


Liability – In most instances, it is cheaper to carry most of your liability coverage through a personal umbrella policy. This gives you an opportunity to reduce your liability on your home and auto policies, which lowers your premiums.

Assets at risk – In the event of a loss, where the lawsuit extends beyond your auto or home insurance limits, your umbrella insurance will kick in, and provide additional coverage. In instances where you do not carry an umbrella, the claimant can personally collect from you. At this point, you will need to list all assets that are not exempt from liability lawsuits. These can include :vehicles, boats, business assets you own, investment real estate, future wages, money in savings, investments, and personal belongings.

Creative Risk Management Week

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Interested in learning more? Please email us at or call 773-945-6000.

Vero Insurance is a niche broker with a focus on providing insurance placement and risk management services to high-income families. Here at Vero, we love to provide you with exciting and fun articles to learn more about insurance and how it impacts your life. Visit our other blogs to find more information.

While Vero does offer a wide variety of personal insurance coverages, our main coverages include: personal umbrella insuranceauto insurance, and homeowner’s insurance. To find the best coverages for you and your family, use the contact form below so you can be at ease knowing you’re covered.