Your home is probably your most valuable asset, both as an investment and as your sanctuary in a hectic world. Understanding what your policy includes is important.
What Does My Policy Insure Against?
- Fire, Lightning, Windstorm or Hail
- Explosion, Volcanic Eruption, Riot or Civil Commotion
- Aircraft
- Vandalism or Malicious Mischief
- Vehicles
- Smoke
- Theft
- Weight of Snow, Ice or Sleet
- Accidental Discharge or Overflow of Water or Steam
- Freezing of Plumbing or Related Systems
- Rupture of Heating, Air Conditioning, Hot Water or Sprinkler Systems
- Falling Objects
- And several other perils not specifically excluded.
What Are the Different Coverages on My Policy?
- The Dwelling or “Coverage A”
- This provides protection against direct physical damage to the dwelling listed on the policy – basically your home from wall to wall, floor to ceiling, interior and exterior. Also included would be any items attached to your home like a garage or carport. The dollar amount assigned to this section is a calculation of what it would cost, in the even of a total loss by a covered peril, to rebuild your home back to it’s pre-loss condition. This is also called a Replacement Cost Estimate or Guide.
- Other Structures or “Coverage B”
- Coverage under this section is extended to items not directly connected to your home like a detached garage or shop as well as sheds and fences. The Coverage B limit is typically 10% of the Coverage A limit.
- Personal Property or “Coverage C”
- The contents of your home, or all your “stuff” falls under this section. Clothing, furniture, electronics, appliances, tools or anything else that is not a permanent part of your home. If any of these items are damaged or lost due to a covered peril, they can be replaced at either an Actual Cash Value or Replacement Cost approach. Additional endorsements can also be placed on higher value items such as jewelry, collectables or fine art. Protection under this section is also extended to your personal property anywhere in the world. The Coverage C limit is typically 50%-75% of the Coverage A limit.
- Loss of Use/Additional Living Expense or “Coverage D”
- If your are not able to live in your home after a covered loss (for example a fire or flooded basement) this section of coverage will provide financial assistance for you to secure other living accommodations until your home can be repaired. Also included in this coverage section would be money for food and even transportation expenses. The Coverage D limit is typically 40%-50% of the Coverage A limit.
- Personal Liability or “Coverage E”
- In the event a claim or suit is made against you for damages to property or due to bodily injury and you are found liabile, this section will pay up the the limit of liability and the cost to defend you even if the claim is perceived as faulse, inaccurate or groundless. Examples of this would include your dog biting somebody, a person is injured at your house or other personal activities causing bodily injury or property damage even if they were unintentional. Coverage E limits are typically $100,000 or $300,000.
- Medical Payments to Others or “Coverage F”
- This section is placed to cover medical expenses for people who are injured accidentally in your home or on your property. This may include hospital or doctor bills, emergency response charges and other medical procedures deemed necessary due to the injury. Coverage F limits are typically $1000-$5000.
Being a homeowner can be a dream come true, so don’t let the above named perils become a nightmare. Let us help guide you through the Homeowners Policy and determine which one of the several companies we represent will best meet your needs and provide the most valuable combination of tailored coverage, quality service and fair pricing.