Can my homeowner's insurance policy provide replacement cost (new for old) coverage on personal property? Yes.
Our homeowner packages can provide for replacement cost on personal property as
an optional coverage.
Does my homeowner's insurance policy include replacement cost (new or old) coverage on my home? Yes. Our
homeowner’s packages provide replacement cost on the dwelling coverage. So if
a hailstorm ruins your 10-year-old roof all you should pay is your deductible. Is
Jewelry covered by my policy without having it listed? Yes.
Our homeowner packages provide coverage for jewelry. There is a $2,500 theft
limit on jewelry that may be increased. Is
my swimming pool covered by my policy? Yes.
Our homeowners package covers related private structures on the "insured
premises" this includes outdoor swimming pools and attachments. Your policy
contains 10% of the dwelling amount and may be increased. Is
my shed covered or do I have
to list it separately on my policy? Yes.
Our homeowner’s packages contain automatic coverage for "detached private
structures". The policy contains an automatic coverage of lO% of the
principal building amount for personal use detached buildings. Buildings that
are used or were used for farming or any business use need to be specifically
insured. Are
the contents of my garage covered? Yes.
The policy provides coverage for personal property that are on premises in any
building, or for that matter, even if they are not within buildings. Am
I covered if someone is injured on my property and they sue me? Yes.
Your homeowner’s package contains liability insurance for claims against you
for bodily injury or property damage arising out of your personal acts or due to
your ownership or use of the premises. Does my policy provide coverage to cleanup the debris from my premises after an insured loss? Yes. Our
policies contain coverage for debris removed within your limits of coverage. Is
my small boat and motor covered on my policy? Yes.
Our homeowner's insurance policies provide for coverage of up to $1,500 for
watercraft and equipment. There are certain limitations and liability coverage
is only provided automatically for outboard motors up to twenty- five
horsepower, and therefore, any watercraft should be discussed with your
Insurance Agent. Is
my business use computer covered in my home? Yes.
Limited coverage is provided of $2,500 for business use tools and equipment
while on the "insured premises and $250 while away from the "insured
premises". Y our Insurance Representative can advise you best in this
regard. Are the contents of my food freezer covered if the freezer breaks down and the contents are lost? Yes. Our
homeowner’s package contains an extension of coverage of $500 for
consequential loss of food freezer contents due to the breakdown of the freezer
unit. Are
my child's contents covered while they are in residence at university? Yes.
Our homeowner's insurance policies include an extension of coverage of up to 10%
of the personal property limit for each student residing away from home. Am
I covered if my sump pump fails and water fills my basement? No.
Unless you purchase "Water Damage Coverage" (sewers, drains, and
sumps). Am
I covered for "acts of God" on my homeowner's package? II
Acts of God" can include many if not all possible losses. However the
normal items referred to as II Acts of God" such as wind, lightning,
hurricane and tornado are covered on our home packages. Specific exclusions are
included however for flood and earthquake. Am
I covered for the theft of personal money?
Yes. Our home package policies provide for the loss of money to a limit of $250.
I
understand that many motorized vehicles are not covered by property insurance.
Am I covered therefore for my garden tractor and snow blower? Yes.
The home package is extended to provide coverage for garden tractors and snow
blowers. Also the liability coverage includes the operation of these units
automatically. If
someone steals my credit card and uses it am I covered for the unauthorized use
if I followed all of the credit card contract agreement? Yes.
Our homeowner’s package provides for up to $1,500 coverage for credit or
debits cards, forgery and counterfeit money. Am
I covered if somebody sues me because my dog bites him or her? Yes.
The comprehensive liability portion of our home package policies extends to
provide coverage for liability arising out of your ownership of domestic
animals. If
I start to run a business from my home am I covered? No.
The standard personal home policy doesn't cover operating a business from your
home. However we have a home run business package to meet your needs. Your
Insurance Agent can provide you with the necessary details to purchase proper
coverage. If
I have a visitor at my home and their contents are damaged can I claim on my
policy? Yes.
Our package policies include an extension of coverage for uninsured property
of others on your premises other than property of unrelated roomers and
boarders. Are
my sports cards insured under my general contents? Yes.
Sports cards are covered under the basic package up to your personal property
limit. If you have a valuable collection you should see your Insurance Agent to
arrange specific coverage on your collection. Is
my antique furniture covered on my policy? Yes.
The basic property policy provides coverage for your property even if it is
antique. However it is difficult to evaluate property after many different types
of losses. Therefore it is recommended that you discuss your situation with your
Insurance Agent to ensure that you are fully covered. If
I put a deck on the back of my house am I covered for the additional cost to
rebuild my home? No.
You must inform your Insurance Agent if you make any changes at your home that
would increase the overall value of your home. If I have a loss that I think may be a claim should I call My Agent? Yes.
Definitely. Your Insurance Agent is your best advisor in the event of a mishap.
He/she can advise you if a claim is possible or advisable and at the same time
give you some direction as to how to proceed with the repairs and/or replacement
of your property. Is my 4-wheeler or car covered on my property policy when stored in the garage on my property? No. The property
policies contain an exclusion that states that there is no coverage for
motorized vehicles other than lawn tractors and other equipment used to maintain
the residence premises. Any other vehicle must be insured on an Automobile
policy. Are you covered for direct losses due to fire, lightning, tornadoes, windstorms, hail, explosions, smoke, vandalism and theft? Yes. The Form 3 provides broad coverage for a large number of perils, including all those listed. There are some limits, however, on the amount of insurance you have. Action
Your house is totally destroyed in a fire. You have bought $150,000 worth of insurance to cover the structure of your house. Will this be enough to rebuild your home? If
the cost of rebuilding your home were equal to or less than $150,000 you would
have enough coverage The Form 3 policy pays for structural damage on a
replacement cost basis. If the cost of replacing your home is, say, $120,000,
then that is all the insurance you need. On the other hand if the cost of
rebuilding your home is $180,000, then you will be short $30,000. If you choose
not to replace your home, you will receive the replacement cost of your home,
less depreciation. This is called actual cash value. Action - Make sure that the amount of insurance you have will cover the cost of rebuilding your house. You can find out what this cost is by talking to your insurance representative or builders in your area. Do not use the price of your house as the basis for the amount of insurance you purchase. The market price of your house includes the value of the land on which the house is situated. In almost all cases, the land will be still there after a disaster, so you do not need to insure it. You only need to insure the structure. Are you covered for flood? No. Action
- Flood
insurance is provided by the federal government, under a program run by the Federal
Insurance Administration. If you are in a flood prone area it may be wise to
purchase flood insurance. In some parts of the country, homes can be damaged or
destroyed by mudslides. This risk is also covered under flood policies. Contact
your agent or company representative to get this insurance. A pipe bursts and water flows all over your floors. Are you covered? Yes.
The Form 3 covers you for accidental discharge of water from a plumbing system. Action - Check your plumbing and heating systems once a year. While you are covered for damage, who needs the mess and hassle? Water
seeps into your basement from the ground. Are you covered? No.
Water seepage is excluded under the From 3. And if the water seepage is not due
to a flood you will not be covered under a flood policy. Problems like seepage
are viewed as basement. Are
you covered for earthquake damage? No.
Earthquake
coverage is sold as additional coverage to the homeowner's policy. To determine
whether you should purchase this insurance, talk to your agent or company
representative. In earthquake prone areas, the price of this insurance is
relatively high. In other areas, it is relatively cheap. A
neighbor slips on your sidewalk and threatens to take you to court for damages.
Does your policy protect you? Yes.
If you have purchased liability coverage Your policy will pay for damages, if
the accident is the result of your negligence. It will also pay for the legal
costs of defending you against a claim. Also, the medical payments part of your
homeowner's policy will cover medical expenses arising from an injury to a
neighbor or guest. Action
- Check to see how much liability
protection you have. The standard amount is $100,000. If you feel you
need more, consider purchasing higher limits. During
a storm, a tree falls and damages your roof. Are you covered? Yes.
You are covered for the damage to your roof. You are also covered for the
removal of the tree, up to a $500 limit. Cut down dead or dying trees
close to your house. Prune maintenance issues and are not covered by insurance. Action
- You should see a contractor
about waterproofing your branches that are near your house. It's true that your
insurance covers damage, but falling trees and branches can also injure your
family. During
a storm, a tree falls and does no damage to your property. Are you covered for
the cost of removing? No.
Your trees and shrubs are covered for losses due to risks like vandalism, theft
and fire, but not wind damage. During
a storm, the power from the electric utility is lost. All the food in your
refrigerator is spoiled and must be thrown out. Can you make a claim? The
general answer is no. However, there are a number of exceptions. Some policies
have limited coverage included for this type of loss. Action
- Check
with your agent to determine whether you are covered for food spoilage in your
state. If not, you can add food spoilage coverage to your policy for an
additional premium. Your
golf clubs are stolen from the trunk of your car. Can you recover? Yes.
The Form 3 covers your personal property while it is anywhere in the
world. However, if your golf clubs are old, you will only get their current
value. This normally will not be enough to purchase a new set. Action
You
have a powerboat with a 50 horsepower engine. If it is stolen, are you covered?
What if there is a boating accident and you get sued? Are you covered? If
the boat is stolen, you can recover up to the $1,500 limit on the policy. You
are also not covered for liability arising from an accident with the boat. The
homeowner's policy provides liability coverage for boats with engines 25
horsepower or less. Action
- See your insurance
representative about getting extra coverage for your boat, including theft and
liability. Ask about an Inland Marine Policy. Does
your policy provide less coverage than the FORM 3? Answer
- If the answer is yes, review your coverage with your agent. Some
older policies provide less coverage than the Form 3. They may not provide
coverage for water damage, theft, or liability. They may also provide coverage
for the house on an Actual Cash Value basis, rather than a replacement cost
basis. Actual Cash Value means replacement cost less depreciation. For example,
if your roof is destroyed in a storm, the insurance will only pay the cost of a
new roof less than amount of depreciation of the old roof. If your roof was in
great shape, this deduction will not be large. However, if the roof was old and
worn out, the deduction for depreciation may be large. Talk with your agent to
see what type of upgrades your home needs to qualify for a Form 3 policy. For consistency, it is assumed that you have a policy known as Homeowners-3 (Form 3), the most common homeowners policy in the United States. Check with your agent to see if that's what you have. If you have a more restrictive policy, review your options under question # 14 and talk to your insurance representative.
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