Your dwelling and personal property is protected against almost any peril, except those specifically excluded in the policy. Those perils include:

-Fire
-Lightning
-Smoke
-Vandalism/Riot
-Explosion
-Wind & Hail
-Water Damage from Plumbing, Steam or Water Heating Systems
-Collapse
-Falling Objects
-Freezing of Plumbing
-Damage by Vehicle/Aircraft

You'll Have Coverage Against Loss From Theft

-On Premises
-Off Premises
-Stolen Credit Cards/Counterfeit Money
-Stolen or Forged Checks

You'll have protection for you and your family against certain liability claims brought by others for accidental bodily injury or damage to their property (subject to policy terms and conditions). This protection does not cover auto liability claims.

-Liability and Defense Costs/Bodily Injury and Property Damage Lawsuits
-Damage to Property of Others
-Guest Medical Protection

Your guests will have medical protection in case they are accidentally injured on your property as a result of a covered loss, will be paid for medical expenses they incur, regardless of who was at fault (subject to policy terms and conditions).

HOW TO INSURE YOUR HOME

When you insure your home, you are really insuring two distinct things --

(1) The structure of your home
(2) Your personal belongings

THE STRUCTURE OF YOUR HOME

Three ways to insure the structure of your home:

1-REPLACEMENT COST - Insurance that pays the policyholder the cost of replacing the damaged property without deduction for depreciation, but limited to a maximum dollar amount.

2-EXTENDED REPLACEMENT COST - An extended replacement cost policy, one that covers costs up to a certain percentage over the limit, may be purchased instead of a guaranteed replacement cost policy. This gives you protection against such things as a sudden increase in construction costs due to a shortage of building materials.

3-ACTUAL CASH VALUE - Insurance under which the policyholder receives an amount equal to the replacement value of damaged property minus an allowance for depreciation. Unless a homeowner's policy specifies that property be covered for its replacement value, the coverage is for actual cash value.

YOUR PERSONAL BELONGINGS

Click here to view and print a Home Inventory Checklist.

Two ways to insure your personal belongings:

1-REPLACEMENT COST COVERAGE - Insurance that pays the dollar amount needed to replace damaged personal property with items of like kind or quality without deduction for depreciation.

2- Insurance under which the policyholder receives an amount equal to the replacement value of damaged property minus depreciation. Unless a homeowner's policy specifies that property be covered for its replacement value, the coverage is for actual cash value.

Suppose, for example, a tree fell through the roof onto your eight-year-old washing machine. If you had an actual cash value policy, the company would pay the depreciated value of the washing machine. A machine that had been used for eight years would be worth less then its original cost. That means that you would have to either buy a used machine or pay the difference between the amount your insurance company paid you and the cost of the new machine.

However, if you had a replacement cost policy for your personal belongings, the insurance company would pay to replace the old machine with a new one.

Here are a few other things to keep in mind when your are insuring your belongings:

1. Check the limits on personal items, such as jewelry, silverware, furs and computer equipment. If the limits are too low, consider buying a special personal property "endorsement" or "floater." An endorsement is an addition to your policy. A floater is a form of insurance that allows you to insure valuable items separately.

2. Make an inventory of everything you own in your home and in other buildings on the property, except your car, which must be insured separately. Write down the major items you own along with all available information:

a. Serial number
b. Make and/or model number
c. Purchase prices
d. Present value
e. Date of purchase

Don't forget to include indoor and outdoor furniture, appliances, stereos, computers and other electronic equipment, hobby materials and recreational equipment, china, linens, silverware and kitchen equipment, jewelry and clothing.

3. Take either still or video pictures of these items. Attach receipts to the inventory when available. Store the inventory and visual records away from your home - perhaps in a safe deposit box.

4. Add major purchases to the inventory and visual record soon after the purchase.

Continue Reading about Home Insurance

Click Here to Return To Home Insurance Main