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What does my homeowner insurance policy cover?
Is the present amount of dwelling coverage on my homeowner
policy sufficient?
May I increase or decrease the amount of insurance on personal
items in my home?
Are there any items in my home not covered by my homeowner
policy?
If my home is damaged from a covered peril and I cannot live
in it until repairs are made, will my insurance
policy cover my living expenses?
If my home or personal property is water damaged because a
pipe burst in my home, what is covered under
the homeowner policy?
If my plumbing or heating system freezes and my home is damaged
as a result, what coverage do I have?
If my pets cause damage to my personal belongings, what coverage
do I have?
Is there any limit on the insurance for my silverware?
If my home suffers damage from vandalism, do I have coverage?
If a visitor is injured on my property, what protection do
I have?
If I conduct business at home, is my business property covered
by my homeowner policy?
Does my policy cover debris removal?
How can I insure special items?
Does my homeowner policy provide protection against liability
for my recreational motor vehicles?
Do homeowner insurance premium plans cost more?
Can my insurance company ask me for more money once we agree
on a policy?
May I cancel my homeowner policy?
Can my insurance company cancel my homeowner policy?
What is insurance-to-value?
What is "replacement cost" and "actual cash value"?
What is coinsurance?
Could you give me an example that explains coinsurance?
What is a deductible?
What does "loss away from premises" mean?
What
does my homeowner insurance policy cover?
Basically, homeowner insurance covers your house,
any adjacent structures (such as a garage) and
your personal belongings. Homeowner insurance
protects you from specific types of home-related
accidents and incidents. The most common types
are fire, theft and vandalism.
Homeowner coverage goes
beyond your home and possessions, providing
for additional living expenses, such as hotel
expenses, if you are temporarily unable to
use your house due to an accident. The policy
also provides liability protection. If you
or a member of your household is responsible
for injuring someone or damaging someone's
possessions, your policy covers it.
When purchasing homeowner
insurance, remember that you select the amount
of coverage you will need to replace your home
and property, and an amount to cover any liabilities.
Also note that most standard policies do not
cover flood damage. Especially if you live
in a high-risk area, you should purchase flood
insurance separately.
Is
the present amount of dwelling coverage
on my homeowner policy sufficient?
If your policy¹s value is large enough for you
to rebuild your house if a total loss occurred,
then you are properly insured. You should review
your insurance periodically to make sure you
are adequately covered because the replacement
cost of your home will change over time.
May
I increase or decrease the amount of
insurance on personal items in my home?
Yes. Initially, your personal property coverage
usually reflects 50 percent of your home coverage.
It may be increased or decreased, depending upon
state requirements.
Are
there any items in my home not covered
by my homeowner policy?
Most items are covered for loss or damage and
are subject to limits. For example, if jewelry
was stolen from your home, you may be reimbursed
up to a certain limit, perhaps $1,000. Some items
may not be covered unless they are specifically
insured, or "scheduled." It is wise to itemize
valuables to be sure that your personal property
is properly insured.
If
my home is damaged from a covered peril
and I cannot live in it until repairs
are made, will my insurance policy cover
my living expenses?
Yes. Homeowner coverage allows for Additional
Living Expenses. The amount of coverage is generally
20 percent of the amount of coverage on your
home. If you have $100,000 coverage, you may
have as much as $20,000 for additional living
expenses.
If
my home or personal property is water
damaged because a pipe burst in my home,
what is covered under the homeowner policy?
You are covered up to your policy limits to repair
or replace items damaged to your home and personal
property, and for any additional damage caused
while the faulty system is being repaired. For
example, you are covered for the expense of tearing
out the wall or ceiling to replace a broken pipe.
You are not, however, covered for the cost to
replace the pipe. You are not covered for the
cost to repair or replace the system, unless
the water damage was caused by freezing. In order
for water damage to be covered, it must be sudden
and accidental. Damage resulting from a slow
leak over a period of time would not be covered.
If
my plumbing or heating system freezes
and my home is damaged as a result, what
coverage do I have?
You are covered for resulting damage to your
home or personal property as well as for damage
to the plumbing or heating system itself. If
your home is vacant or unoccupied at the time
the freeze occurs, you are covered as long as
you have taken the necessary precautions to keep
the building heated or had the water turned off
and the plumbing and heating systems drained.
If
my pets cause damage to my personal belongings,
what coverage do I have?
There is no coverage on the homeowner policy
for loss or damage to personal belongings caused
by a pet or other domestic animal.
Is
there any limit on the insurance for
my silverware?
In most states, there is a limit of $2,500. If
you need more coverage, you should consider "scheduling" the
silverware.
If
my home suffers damage from vandalism,
do I have coverage?
You have coverage up to the limits of your policy,
unless your house was vacant for 30 or more consecutive
days immediately preceding the incident.
If
a visitor is injured on my property,
what protection do I have?
If you are legally liable for the injury, you
are covered up to your policy limits under the
liability portion of your homeowner policy. Usually,
the insurance company will also pay for medical
expenses for your visitor, up to specified limits.
Exclusions and limitations vary depending upon
the state in which you live.
If
I conduct business at home, is my business
property covered by my homeowner policy?
There is coverage up to $2,500 for property on
the "residence premises" that is used at any
time or in any manner for a "business" purpose.
Does
my policy cover debris removal?
Yes, in the case of a covered loss, your homeowner
policy covers the expense to remove debris, such
as shingles that blew off your roof.
How
can I insure special items?
You can schedule the item in your homeowner policy.
This means you specifically describe and insure
these items. You will pay additional premium,
depending upon the amount you wish to insure
such items for. Most people schedule jewelry,
furs, art, silver, antiques, coin and stamp collections
and photographic equipment.
Does
my homeowner policy provide protection
against liability for my recreational
motor vehicles?
In most cases, you have liability protection
on recreational vehicles such as a snowmobile
as long as any bodily injury or property damage
occurs on the insured's premises.
Do
homeowner insurance premium plans cost
more?
Usually, yes. Like any installment plan, insurance
premium payment plans may include interest or
fees. You should ask your insurance representative
how much the interest or fees add up to.
Can
my insurance company ask me for more
money once we agree on a policy?
Most insurance companies write non-assessable
policies for which there is only one rate. Therefore,
if an insurance company has a year full of catastrophes,
it cannot ask the policyholder for more money.
On an assessable policy, the insurance company
could ask the insured for more money to cover
losses.
May
I cancel my homeowner policy?
Yes, you may cancel your insurance at any time
and the insurance company will return the appropriate
amount of pre-paid premium. However, if there
is an existing mortgage on your home, be sure
to have another policy in place because mortgage
companies require that you have adequate homeowner
insurance coverage.
Can
my insurance company cancel my homeowner
policy?
Yes, although this is rare. There are legal provisions
that allow an insurance company to cancel your
homeowner insurance. The most frequent reason
for cancellation is non-payment of premium by
the insured. Insurance companies must have good
reason to cancel a policy, and ample notice must
always be given.
What
is insurance-to-value?
Insurance-to-Value means having adequate coverage
for the actual replacement value of your home
in the event that a loss occurs.
What
is "replacement cost" and "actual cash
value"?
Replacement Cost is the amount of money you would
need to spend to replace your home with another
of like kind and quality on the same site. Actual
Cash Value is the replacement cost less depreciation.
To determine the actual cash value, the general
condition and character of your home are taken
into account. Replacement Cost and Actual Cash
Value are generally used in reference to the
home, not to the land it is built on.
What
is coinsurance?
Coinsurance is a provision in a homeowner insurance
policy that states that if you fail to carry
at least 80 percent of the replacement cost of
the property, you may receive a reduced loss
settlement. The coinsurance clause relates to
the value of the property when the loss occurs,
not the time at which the policy was written.
Most policies have a coinsurance provision.
Could
you give me an example that explains
coinsurance?
Assume that property valued at $100,000 is insured
for only $40,000 and a loss of $40,000 occurred.
If the policy had no coinsurance clause, you
would get $40,000. If the policy contained the
usual 80% coinsurance clause, you would get only
$20,000. Because you carried only one-half ($40,000)
of the 80% ($80,000) insurance required by the
coinsurance clause, you would receive only one-half
($20,000) of the $40,000 loss.
What
is a deductible?
The deductible is the initial amount of the loss
for which the policyholder is responsible. The
insurance company is responsible for the amount
in excess of the deductible up to specified limits.
What
does "loss away from premises" mean?
Loss away from premises is a loss incurred by
the policyholder while he or she is away from
the home, for example, if a theft occurred in
a hotel room while the policyholder was on vacation.
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