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Homeowners Homeowners A homeowners policy is actually a combination of insurance covering much more than the home: COVERAGE A: The Dwelling
Coverage of your house and attached structures (such as a garage) against fire, wind, vandalism and many other risks (depending on the type of policy you choose).
COVERAGE B: Unattached Structures
Coverage for structures on the same property, not attached to the main dwelling, such as a greenhouse, garage or boathouse. COVERAGE C: Possessions
Coverage for loss or damage to the contents of your home, or subject to the terms of the policy, your possessions as you travel. For example, a fire in the kitchen or a VCR stolen from your den. The maximum limit of coverage is a specified percentage of the insured value of the dwelling.
COVERAGE D: Living Expenses/Loss of Use
Coverage reimburses you for the cost of living elsewhere while your home is being repaired or rebuilt. If part of the property was rented to others, this coverage will reimburse you for loss of rental income (at fair market rates). LIABILITY
Liability pays for damages assessed against you if someone is injured on your property or by your unintended actions elsewhere; for example, a neighbor child injured in your backyard pool, or your child throws a baseball through the neighbor's window. There are many options in homeowners policies. Defining each is beyond the scope of this site. Policies are grouped into TYPES and labeled with HO-3 through HO-6. Each type of policy contains some or all of the CATEGORIES of coverage described above (Coverage A through D and liability). The following chart will give you a general overview. Your VIA agent can help you with particulars:
*Special Contents, Special Dwelling
VALLEY INSURANCE ASSOCIATES, INC. SUGGESTS: COVERAGE A: Dwelling
Insure for 100% or replacement value. Choose HO-3 as a minimum and give serious consideration to an HO-5.
COVERAGE B: Unattached Structures
Talk to your agent for specific suggestions on your unattached structure. COVERAGE C: Possessions
Choose Replacement Cost coverage, or be prepared for a shortfall of many thousands of dollars should you have to replace the contents of your home. The minimum payment limit on possessions should be 50% or more of the value of Coverage A (the dwelling). Away from home, the limit on payments is usually 10% of the value of Coverage C. COVERAGE D: Living Expenses
Many underestimate such expenses. Coverage should be at least 20% of the value of the dwelling in Coverage A. If your home is unusual in design or would otherwise be time consuming to rebuild, increase this coverage. LIABILITY
This coverage should be $300,000 or greater. If you are concerned about protecting your assets and future earnings, we suggest you consider an umbrella policy. This protects you against a broad variety of risks typically up to one million dollars. WHAT ABOUT MY...
Watercraft...most homeowners policies cover this, subject to restrictions, outboard motors up to a certain horsepower and boats valued at certain limits. Policies vary by company. Check with your agent. Money & Securities...covered to limitations specific to each policy. Guns...subject to policy limitations as to perils and values, usually to $500 maximum. Higher limits are available. Jewelry...limited to perils covered in policy chosen. Certain policies will cover $1000-2000. Additional limits and/or coverage or additional perils are available. Water or Sewer Back-up...covered on HO-3 and HO-5 policies, subject to limits offered by various insurance companies. Additional limits are usually available.
Checklist for Homeowners Insurance:
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