INSURANCE RESOURCES
Life
Health
Automotive
Homeowner's
 |
Before you shop for homeowner's insurance's, make sure you understand the basics about the contract you're purchasing. Homeowner insurance is the most popular personal insurance on the market today. If you own or lease property, you should have this protection. Mortgage lenders typically require you obtain homeowner's insurance as part of their financing agreement. |
 |
| |
Homeowner's insurance protects you in two ways. First, it guards your property and belongings. This helps you repair, rebuild or completely replace your house, furniture and belongings should you fall victim of a casualty. Secondly, it protects against personal liability or the unfortunate event of a lawsuit or burglary. |
|
| |
In your homeowner's insurance policy, the property section covers against loss or damage, and increased expenses as a result of these losses. Property coverage is typically referred to as Coverage(s) "A", "B," "C," and "D". Understanding each breakdown will make you a more informed consumer when shopping for insurance. |
|
| |
Coverage "A" insures your main dwelling structure and all permanent attachments covering All Physical Loss (APL) based upon the Replacement Cost Value (RCV). |
|
| |
Coverage "B" insures other property structures that aren't permanently attached to your home, such as a fence, gazebo or pool; and landscaping, such as trees, shrubs, gardens, sprinklers or patios. This insures All Physical Loss (APL) based upon Replacement Cost Value (RCV), except trees, shrubs, plants and lawns, which are covered on a Named Peril (NP) basis. Keep in mind, separate structures on your land "intended for use" or used "in whole or part" for business purposes are not covered. |
|
| |
Coverage "C" protects your personal property, or "anything you own which is not a permanent part of your dwelling, out buildings or land (clothes, furniture, jewelry, paintings, appliances, etc.)". This coverage is usually Named Peril (NP) based on Actual Cash Value (ACV). Most policies have limitations on some types of personal property including artwork, business property, manuscripts, passports, firearms or electronic data equipment. |
|
| |
Coverage "D" protects your household budget and is typically referred to as Additional Living Expense (ALE) or Loss-of-Use Coverage. For instance, if your loss makes your home uninhabitable, expenses may include relocation or temporary residence. |
|
| |
Med-Pay Coverage pays expenses resulting from another individual's bodily injury while on your property due to negligence (an act or failure to act) on your part for which you may become legally liable. Med-Pay Coverage also pays others injured while on your property whether you are legally liable or not. |
|
| |
While Med Pay Coverage reimburses medical expenses resulting from injury, Liability Coverage insures medical expenses, lost wages, pain and suffering and so forth. |
|
| |
The first consideration when purchasing homeowner's insurance is the amount and type you need. Next, calculate the amount of personal property insurance and personal liability coverage you need. Then, think about extra coverage for your personal situation. |
|
| |
Your home and all personal property should be insured for its full replacement value. Personal and extra coverage liability differs for each situation. For example, do you have antiques, live in an earthquake center or operate a business from your home? Evaluate your situation and determine the best coverage for you. |
