Home Insurance
Homeowner’s Insurance
Homeowner’s Insurance is a common coverage that most people are aware of. However, a Homeowner’s Insurance Policy is comprised of many coverages that protect not only your home, but your personal belongings as well.
A typical homeowner’s policy includes coverage for the following:
Dwelling: The amount of coverage it would take to repair or replace your home in the event of a covered loss. This coverage is available for purchase to cover your home’s actual cash value or full replacement cost. This coverage should be carefully discussed so that you have the adequate cover for your home.
Other Structures: Coverage for the repair or replacement of additional structures such as outbuildings or tool-sheds on your property.
Contents: The amount of money you would use to replace your personal belongings. This coverage would be used to replace everything from clothing to furniture. It is recommend that all homeowner’s have a room by room inventory of everything in their home so that in the event of a loss, items to be replaced would be easily accessible.
Additional Living Expense: This is the amount your company would reimburse you for expenses incurred while your home is being repaired or replaced due to a covered loss. This coverage helps you to maintain your standard of living after being displaced by loss.
Personal Liability: This coverage helps to cover your legal liability if negligence on your part causes someone injury or damage to their property. Usually, the default limit is $100,000 however, some companies offer lower limits. It is best to choose the coverage limit that reflects the amount of your assets in the event of a lawsuit.
Medical Payments: This coverage helps to pay medical bills for individuals injured while on your property.
Deductible: This is the amount you chose to pay as your portion of a loss. Higher deductibles discourage frivolous claims as well as lower your premiums.
Carriers offer all types and varieties of coverages. It is best to discuss the optional coverage’s for your home including Guaranteed Home Replacement, Guaranteed Contents Replacement Coverage, Domestic Appliance Leakage and Seepage, Ordinance of Law (bringing your older home up to code after a covered loss has occurred).
Renter’s Insurance
Renter’s Insurance covers individuals and family who choose to rent/lease their home. This could be an apartment or dwelling. The coverages typically included are much in the same as a homeowner’s policy with some exceptions.
The coverages in a renter’s policy include:
Contents Coverage: The amount of money you would use to replace your personal belongings. This coverage would be used to replace everything from clothing to furniture. It is recommended that all renters have a room by room inventory of everything in their home so that in the event of a loss, items to be replaced would be easily accessible.
Additional Living Expense: This is the amount your company would reimburse you for expenses incurred while your home is being repaired or replaced due to a covered loss. This coverage helps you to maintain your standard of living after being displaced by loss.
Personal Liability: This coverage helps to cover your legal liability if negligence on your part causes someone injury or damage to their property. Usually, the default limit is $100,000 however, some companies offer lower limits. It is best to choose the coverage limit that reflects the amount of your assets in the event of a lawsuit.
Medical Payments: This coverage helps to pay medical bills for individuals injured while on your property.
Deductible: This is the amount you chose to pay as your portion of a loss. Higher deductibles discourage frivolous claims as well as lower your premiums.
Renter’s Insurance does also offer additional coverage options that can be discussed with your agent. If also very important to remember:
Caution!! There are a surprising number of individuals that think their belongings and/or liability is covered by their landlord’s insurance. This is a common misconception and a dangerous one. If your rent/lease your home and it burns or is destroyed by a storm, your items would only be replaced if you have the proper Renter’s Coverage.
Landlord
Dwelling Fire Policies are issued most often times for Landlords or non-owner-occupied dwellings. The coverages available for Dwelling Fire policies usually include some or all of the following:
Dwelling: The amount of coverage it would take to repair or replace the dwelling in the event of a covered loss. This coverage is available for purchase to cover the dwelling’s actual cash value or full replacement cost. This coverage should be carefully discussed so that you have the adequate cover for your home.
Other Structures: Coverage for the repair or replacement of additional structures such as outbuildings or tool-sheds on the covered property.
Contents: The amount of money you would use to replace your personal belongings. Normally the personal property coverage would be minimal to cover incidental belongs to the owner or items such a ranges, microwaves or refrigerators.
Loss of Rents: Coverage that pays for loss of rental income when a building that is rented/leased to others has been damaged by a covered loss. In some cases, coverage can be purchased for the fair rental value of the portion of the premises occupied by the insured.
Landlord Liability: Much like any other liability included in this type of policy, Landlord Liability is coverage to protect the landlord from injury or property damage due to negligence.
Medical Payments: This coverage helps to pay medical bills for individuals injured while on your property.
Deductible: This is the amount you chose to pay as your portion of a loss. Higher deductibles discourage frivolous claims as well as lower your premiums.
According to the Insurance Information Institute, Landlord insurance policies can cost up to 25% more than a standard homeowner’s policy due to landlords requiring more protection than a typical homeowner.
There are ways to minimalize your exposure as a landlord. Regular inspection of the rental properties can ensure the properties are free from hazards or if found, a hazard can be repaired in a timely manner. Contact one of our agents to discuss other ways to help minimize your exposure as a landlord.