Office content coverage: No transparency

Most of us overpaying insurance premium for our office content, but Insurance companies are not that transparent about it.

Acquiring insurance coverage to cover us during the hard time is good and sometimes a requirment by regulatory body or financial institutes.

One example is office content coverage. This covers, in most cases, any damage to expensive dental equipments, from Dental chair to x-ray machine to gagets like laser machines. The coverage may be requested by principle dentist to cover damages by fire, flood, earth quake or theft and vandalism to his or her office equipments or by financial instututes that provide financing to purchase or lease such equipments to cover their lost in case of unforseen incidents happens.

There is one trick that most dentists overlook when they pay at each anniversary for their office content premium. Insurance companies, for most, only cover the depreciated value of equipment at the time of incident. For example, you purchased your equipment in 2009 in the total amount of $300000 and you got the insurance to cover damages up to the value of equipments at the time, in this example $300000. Three years later the equipment depreciation in value bring the total fair market value of your equipments to, let say $180000. This means if you lose your equipment due to flood, the insurance company just cover $180000 rather than $300000 even though you were still paying premium for non-depreciated value. In this example one should adjust the premium based on fair market value of equipment in which insured to $180000 at the end of the third year of acquiring equipments.

In conclusion, principle dentist who insured their office contents should adjust the coverage annually based on the present office content value to avoid paying unnessesary premium to insurance companies.

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