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Homeowner Insurance Policies provides three areas of Coverage
1. Dwelling and Structures - A standard homeowners policy provides coverage to the dwelling (the structure that is your home) and up to 10% of the dwelling amount for other structures on the dwelling property (such as garages, storage sheds, fences, swimming pools) for damage due to common threats like fire and smoke, lightning, theft and extreme weather. Unless it is listed among a policy's exclusions, anything that causes loss to a dwelling is covered. Some of the exclusions are for flood damage, home businesses, workers comp for home or domestic help and may require the purchase of a separate policy. Homeowners can often pay to add endorsements to their policy to cover other exclusions such as earthquake or sewer backups.
- Coverage Amounts - When choosing coverage amounts, people should remember they are protecting the entire home, not simply the amount remaining on the mortgage or their equity in the building.
2. Personal Property - Family possessions and personal property (often referred to as contents) also are covered by homeowners insurance. A standard policy covers you for specified causes, such as fire, theft, vandalism, smoke. In most cases, a policyholder will be reimbursed for damage or theft of personal property, whether the loss occurs on the protected premises or elsewhere. Beware however that high theft items, which includes money, jewelry, fine arts, silverware have coverage limitations. Coverage for antiques and fine arts may also be limited (such as for accidental breakage) and valuation is difficult.
- Coverage Amounts - Typically, the insurer sets the total value of possessions at half of what the home is insured for. But there are limits for certain items and the amount may not be sufficient to cover the replacement of property, so homeowners may want to purchase additional coverage for their possessions. Review of a homeowner's personal inventory is the best way to determine whether his coverage is sufficient.
3. Personal Liability - Homeowners insurance also provides compensation for liability claims and medical expenses, as well as other claims that result from property damage and personal injury suffered by others. This coverage applies whether an accident occurs on the policyholder's property or while away from home.
- Coverage Amounts - The standard amount of liability coverage is $300,000 - $500,000 on a typical homeowners policy. Since even that amount may be insufficient, the homeowner should consult an insurance professional about the availability of higher levels of coverage including umbrella liability protection.
ADEQUATE REPLACEMENT COST FOR DWELLING : Could you rebuild your home for the dwelling limit? If you recently remodeled or built an addition to your home, you may have increased the value. Full replacement cost at today’s construction costs eliminates depreciation of value for a claim. We welcome your call to discuss further.
ADDITIONAL REPAIR COSTS - ORDINANCE OR LAW COVERAGE: This special optional coverage may be needed to cover the additional costs to repair or replace damaged property required by your town in order to comply with current building codes. Your town may even require some or all of the undamaged portion of the house be demolished or upgraded following a claim to comply with current building codes.
CONTENTS REPLACMENT COST: Provides "new for old" coverage without depreciation for all insured household contents.
ADDITIONAL COVERAGE ENDORSEMENT: Homeowners Insurance carries limits on what can be paid for certain items. This low cost endorsement increases and enhances some of the basic policy limits. For example jewelry has a coverage limit of $1,000 but this endorsement typically increases the limit to $2,000. Silverware limit is increased from $2,500 to $3,000. Coverage for refrigerated products and lock replacement is also added. This endorsement extends liability coverage to include liable and slander. And up to $500 is provided for removal of fallen tree debris, even if the fallen tree does not hit a covered structure.
INCREASED LIABILITY LIMITS: In today’s litigious society, lawsuits are on the rise. We recommend you protect your assets with a liability limit to at least $500,000. If you haven’t already done so, consider adding Personal Umbrella Liability Coverage. Sold in increments of $1,000,000 this is a sophisticated and inexpensive way to purchase large limits of liability.
HIGHER DEDUCTIBLE: Significant savings are available with deductibles of $500, $1,000 or more.
JEWELRY, FUR, ANTIQUES, FINE ARTS, PERSONAL COMPUTERS: These items always have limitations. There is often limited and in some cases no coverage for some of these items. However, we can specifically schedule or blanket these items as an optional coverage.
MULTI-POLICY CREDIT: Many companies now offer discounts when you have more than one policy with the same company. If we haven’t already done so it may be worth your while to give us the opportunity to quote on your auto. We may be able to offer your additional savings on both your home and auto insurance if you are not getting it already.
HOME OFFICE OR BUSINESS IN THE HOUSE: Do you maintain an office in your home or perhaps run you business from your house? Your homeowners policy is not designed to cover business property or liability. However, many companies now offer "Business in the Home" Endorsement to provide coverage for businesses operated from the residence premises. Or a separate Business Owners policy may be need, often at very reasonable cost
WATER DAMAGE : Coverage for water damage is limited in a homeowners policy, however some coverage can be added. Backup of water through sewers and drains is specifically excluded, but coverage can purchased and added onto most policies at your request. Flood Coverage is also specifically excluded, but can be purchased through this agency as a separate policy.
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