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Topics in Homeowners Insurance
What Is Replacement Cost?
Why does your agent have your policy for a different amount than your house is worth? Read this article to learn why the amount of insurance
on your homeowners policy is completely unrelated to the value of the house.
Presrving the Value in Your Valuables
Do you know if your homeowners or renters policy will cover your jewelry, electronics, or computer equipment? Do you know if they will be
replaced at the full value, or if the payment will be reduced for depreciation? Do you know if they are covered if they are stolen, lost, or broken?
Avoiding Insurance Nightmares with Vacant Homes
You have taken care of your home all these years, but now you have moved and the house is vacant. Do you know what changes on your insurance coverage
when the house is vacant? More importantly, do you know how to prevent uninsured losses? Read this to learn about vacancy insurance.
How NOT To Lose Your Home-Based Business
About three out of every ten people operate some sort of home business. Their businesses vary widely, and so do their insurance needs.
But they have one thing in common: A typical homeowners policy probably does not cover their businesses the way they think it does.
Insuring a Home-Based Business: Why Most Home Businesses Could Go Up in Smoke
About three out of every ten people operate some sort of home business. Their businesses vary widely, and so do their insurance needs.
But they have one thing in common: A typical homeowners policy probably does not cover their businesses the way they think it does.
Flood and Water Damage: What Does a Homeowners Policy Cover?
Water damage is tricky on a homeowners policy, because the answer is, "It depends." It depends on where the water comes from, and what it damages.
It also depends on your company and your policy. Are you covered for storm damage? Frozen pipes? Flood? Find out here!
So Why Didn't Her Policy Pay the Cost To Satisfy the Building Codes?
Most homeowners policies reimburse you
only for the same quality of roof as the one that was damaged. What if building codes have changed since your home was built, and now you are
required to meet a higher standard? How can you make your policy pay the difference? Find out here!
Five Ways To Protect Your Home from Winter Storm Dangers
We hope you don't experience a storm-damaged roof, leaking basement, or frozen pipes this winter. Nobody wants to
go through that. Here are five very smart ways you can prepare for winter, either to avoid damage, or to be prepared
if it happens despite your preparation.
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Home Insurance Coverages in Plain English
Christy M. Perry, President
Community Insurance Center, LLC
A homeowners insurance policy is designed to cover sudden and accidental damage to your home. It also covers your legal liability to other people because of
bodily injury or property damage arising out of your ownership of the home. The policy offers several different coverages. Some of them come with the
policy automatically at no extra charge; other coverages are option, and you may choose or reject them depending on your needs.
You choose the amount of insurance (also called the "limit") for some coverages. When you choose a limit, you are choosing the maximum
amount that the company will pay. Your insurance policy will cost less if you choose lower limits; but if the total cost of the damages
is more than the amount of insurance you have purchased, then you will be personally responsible for the remaining amount. The amount you choose
should be a balance: You should choose a limit that is high enough to cover accident costs, but not so high that the insurance becomes too expensive.
You choose a deductible with some coverages. This is the amount of each accident that you agree to pay yourself, before the company begins to pay.
The purpose is to keep the cost of your insurance low. If you have minor damage to the house, and the total cost is less than the amount of your deductible,
then you will pay the entire cost of the damage. If the cost is more than your deductible, then you will pay your deductible, and the
company will pay the remainder. Your insurance policy will cost less if you choose a higher deductible. You should choose a deductible that is high as
you can afford to pay if you have an accident, but not so high that it will cause a hardship.
Coverage for Your Property
The first part of a homeowners insurance policy covers sudden and accidental damage to your house, any other buildings on your property, and your
personal possessions.
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Dwelling
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What Is Covered?
Dwelling Protection pays to repair or rebuild your home. It includes attached structures, such as an attached garage.
Some causes of loss are not covered, such as flood or earthquake. Please read your policy carefully. If you need coverage for an excluded peril,
ask your agent how you can obtain additional protection.
The company uses a tool to calculate the amount to rebuild your home based on the type of construction, size of the home, number of rooms,
type of roof, and other features such as skylights and sliding glass doors.
The deductible selected for this coverage also applies to other coverages on the policy.
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Other Structures
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What Is Covered?
Other Structures Protection pays to repair or rebuild other structures on your property that are not connected to your home,
such as a detached garage or a storage shed.
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Personal Property
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What Is Covered?
Personal Property Protection pays the cost to repair or replace your personal property, whether at home or anywhere else in the world.
(Coverage is limited to 10% of the limit shown if the personal property is located in a residence other than your insured residence premises.)
There are limitations on some types of personal property, such as cash, jewelry, computer equipment, and business property.
Your policy gives you the flexibility to choose between different plans, depending on your needs. If you need additional coverage for any of these items,
ask your agent how you can obtain additional protection.
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Additional Living Expenses
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What Is Covered?
Additional Living Expenses Protection pays your additional living expenses for up to a year if you need to live somewhere else temporarily while
your home is being repaired or rebuilt.
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Coverage for Your Liability to Other People
The second part of a homeowners insurance policy pays if you are legally liable to someone else because of bodily injury or property damage
arising out of your ownership of the home. The most common example is a "slip-and-fall" accident, such as if a guest slips on your icy sidewalk
and is injured, but there are many other possible liability claims.
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Personal or Family Liability
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What Is Covered?
Personal Liability Protection pays for damages to others for which you are legally responsible and required to pay. It includes bodily injury and
property damage. Personal Liability Protection also covers the legal expenses to defend you in a lawsuit.
If you need additional coverage, ask your agent about an umbrella policy. An umbrella provides an additional layer of protection for a million
dollars or more on top of your homeowner's insurance and your auto insurance.
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Medical Payments
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What Is Covered?
Medical Payments Protection pays for medical bills for small injuries to your guests. It does not pay for medical expenses for you or for a
household resident.
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Other Coverages and Options
You may customize your homeowners policy with additional coverages and options. It is your choice whether you take these options or not.
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Scheduled Personal Property
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What Is Covered?
Scheduled Personal Property (sometimes called a "Personal Articles Floater" provides comprehensive coverage for items of special value, such as
jewelry or musical instruments.
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Home Enterprise
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What Is Covered?
The Home Enterprise options provides coverage for a home-based business that otherwise would not be covered by a homeowners policy. Click here for
more information on what is not covered by a typical homeowners policy.
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Building Codes
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What Is Covered?
A typical homeowners policy reimburses you only for what was damaged. In some cases, however, your local building codes will require you to rebuild
a damaged house to meet newer, more expensive building codes. Building Codes Coverage ensures that you have enough coverage for the cost of these upgrades.
Click here to learn more about building codes coverage.
This coverage is sometimes called "Laws and Ordinances" coverage.
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Other Options
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What Is Covered?
There are many more options available which are beyond the scope of this article. Talk to your agent for more information.
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Contact your agent!
Policies vary widely from company to company and
from state to state. Contact your agent for more information on what your
current policy covers. Your car is one of your biggest assets, so you need
to protect it properly. More importantly, your car is your dream. If your
policy cannot be adjusted to get the coverage you need, consider shopping
for a different company. And if your agent cannot answer your questions,
consider shopping for a different agent. This type of consultation is the
agent's job. It is why you pay him! Don't you deserve to have your car
properly protected?
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