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Table of Contents Will my policy cover me for earthquakes? Will my insurance company cover damage caused by flood? I've got antiques and fine arts in my home. What kind of coverage would adequately protect them? I have a very valuable piece of jewelry. Is this covered under my basic policy? I have a big freezer full of meat in my basement. If the power goes out, am I covered? I have a very expensive wardrobe. Do I need additional protection? My car has been broken into and my skis
stolen! Will my homeowners insurance cover this?
I have a large amount of tools in my shed. Will my insurance policy cover them if they are stolen or damaged? Yes. Your insurance policy contains coverage for personal property, which would include your tools provided they are stolen (up to certain limits) or if the damage is caused by a covered peril. See your specific policy for details and coverage limits. Will my policy cover me for earthquakes? Basic homeowners insurance policies do not cover damage
resulting from earthquakes. You must purchase this extra. If you are concerned
about your house being damaged by an earthquake. (Property Coverage -Table of Contents)
Will my insurance company cover damage caused by flood? Insurance policies do not cover any damage caused by floods. If you think flooding is a possibility in your area, you should consider purchasing special flood insurance from the National Flood Insurance Program (NFIP) of the U.S. Government. Insurance companies do not underwrite flood insurance and the NFIP is the primary way to protect your property from the devastation of floods. I've got antiques and fine arts in my home. What kind of coverage would adequately protect them? You need to list invaluable items such as these on a separate endorsement. This is known as a Scheduled Personal Property (SPP) endorsement that is added to your basic homeowners policy. SPP acts like a mini-insurance policy on the specified and listed items, provides "all-risks" coverage (except for a few exclusions), and there is no deductible, except for scheduled water craft. (Property Coverage -Table of Contents)
I have a very valuable piece of jewelry. Is this covered by my basic policy? If you own a item of specific value, you can add an endorsement, called Scheduled Personal Property (SPP), which acts like a mini-insurance policy on the specified and listed item or add Extended Coverage, which increases protection on jewelry, watches and furs (up to an aggregate limit for all of these items together which is specified on your policy). Both provide all-risks coverage (except for a few exclusions). With SPP, there is no deductible, except water craft. Many people get extra protection on jewelry, cameras, coin and stamp collections, fine arts, furs, golfing equipment, guns, musical instruments, outboard motor boats, and silverware/goldware. There is no coverage for property and liability damages which arise from a business you own and operate. I have a big freezer full of meat in my basement. If the power goes out, am I covered? Not all policies include damage to food caused by power outage so it's best to check with your insurance company. (Property Coverage -Table of Contents)
I have a very expensive wardrobe. Do I need additional protection? In most cases, you won't have to do anything special. Clothing is covered under Coverage C - Personal Property. It is typically 50% of the insurance you have on your dwelling (Coverage A). You can get up to 70% if you have what is called Replacement Cost on your belongings. This coverage gives you the amount that it would cost to replace the belonging versus the actual cash value. With expensive items, such as furs, you may want to itemize them separately with a Scheduled Personal Property endorsement. It is important, however, to inventory your property to see if this amount is enough for you. This includes all your furniture, clothing, stereo equipment, rugs - in essence, everything you have inside your home. My car has been broken into and my skis stolen! Will my homeowners insurance cover this? Yes. Your homeowners policy includes your possessions
which are temporarily away from home. (Property Coverage -Table of Contents) Table of Contents I've never had an insurance claim. Shouldn't my homeowners insurance costs be going down? What goes into determining the cost of my insurance? How can I lower my insurance cost? Does a higher deductible make a
difference in premium? I've never had an insurance claim. Shouldn't my homeowners insurance costs be going down? If you have never had a claim, your insurance costs can
keep rising, but slower than for those who do have claims. It's because premiums are also based on other factors -
how much it will cost to rebuild your home in the event of a total loss, where
you live, and the theft and burglary rate in your area. And sadly, increased
lawsuits and fraud also contribute to rising insurance costs. What goes into determining the cost of my insurance? Where You Live - Insurance companies look at weather patterns in your area, how quickly a fire department can get to your home, how close the nearest hydrant is to your property, as well as loss statistics in your area. As an example, if you live in a coastal area open to hurricanes or in an area hit by tornadoes, your insurance may cost more because of higher risks due to wind damage. The Home You Live In - Factors that impact your insurance
costs are the age of your home, the type of construction used to build it, and
the amount of insurance protection you need. How can I lower my insurance cost? Many insurance companies offer discounts for fire and theft prevention systems such as: · -Automatic sprinkler systems. · -Central burglar/fire alarms. · -Deadbolt locks, smoke detectors and fire extinguishers.
If you are 55 years old or more and retired, or have both
your auto and home policy with us, or own a home that's less than 8 years old,
you may also be eligible for additional discounts. You can also order Nine
Ways to Lower Your Insurance Costs from the Insurance
Information Institute, 110 William Street, New York, NY 10038 or call
1-800-331-9146 (212-699-9200 in New York). It's the amount you pay before your policy kicks in. In
the event of a covered loss, for instance, if your homeowners policy has a
$250 deductible, you must pay the first $250 to repair or replace the damage.
If repairs only cost $200, you pay for everything. But if covered repairs cost
$1,000, you pay $250 and your insurance company pays the rest. Does a higher deductible make a difference in premium? Most definitely. The higher your deductible, the lower your homeowners insurance premium. We recommend you ask us for a cost comparison based on different deductible options, or call us at 404-847-2525. OTHER HOMEOWNER INSURANCE QUESTIONS Table of Contents How much insurance do I really need? What is the difference between "actual cash value" and "replacement cost" protection? I've just renovated my home. Should I tell my insurance company? I've just built an addition. Should I notify my insurance company? If I have a loss, do I need to show proof of what was in my home? How much insurance do I really need? The last thing you need is to find out after your home has been damaged that you don't have enough insurance. Likewise, you don't want to be paying for insurance you really don't need either. There are ways to make sure you have the right protection - without having more than you need. First, you need to estimate how much your house would cost to completely rebuild it. At Metro Brokers Insurance Services, Inc., we use the E.H.Boeckh Company, which has been a leading authority for more than 50 years, providing building and personal property replacement cost information to the construction and insurance industries. Next, we recommend you also purchase "inflation" protection, which adjusts your limits annually to reflect any increases in value due to inflation. Finally, we recommend Replacement Plus (also referred to as Guaranteed Replacement Cost), which guarantees that you will have the right amount if you need to completely rebuild after a loss. What is the difference between "actual cash value" and "replacement cost" protection? · "Actual cash value" is the amount your property is worth at the time of the loss. It is, essentially, the cost to replace the item minus depreciation, which takes into account the loss of value due to age and normal wear and tear. The actual cash value on a piece of property, whether it is your home, stereo or favorite chair, may be much less than the cost to replace it new. When insurance companies settle on this basis, you may receive a check for an amount much less than you need to replace the item. · "Replacement Cost" is the amount to replace your house, other buildings, and personal property without any deductions for depreciation. Your agent can help you calculate what your Replacement Cost should be. Some lien-holders require you to purchase insurance which
covers the entire mortgage amount. However, your insurance company may indicate
you really need a lesser amount since home insurance covers basically the house
and additional structures, not the land which they sit on or the market value of
your home due to its location. I've just renovated my home. Should I tell my insurance company? Most definitely, especially if your renovations cost more than $5,000. With all the hard work and money that went into your renovations, it's important that you are insured for the right amount so that if you have a loss, you'll get what you need to cover the damages. Most likely, the amount of insurance you now have is inadequate with your recent renovation. (Other
Questions - Table
of Contents) I've just built an addition. Should I notify my insurance company? Most definitely, especially if the new addition cost more than $5,000. It's important to be insured for the right amount so that if you have a loss, you'll get what you need to cover the damages. If you do not adjust your policy to cover the new addition, the amount of insurance you now have may be inadequate to cover a loss. If I have a loss, do I need to show proof of what was in my home? No, but you will need to provide a list of items which were
destroyed or damaged. The more information you have, the better off you will be. With all the stress when you have a loss, it is often very hard to remember everything that was damaged or stolen. To combat this, we recommend you spend a few hours videotaping the contents in your home and storing the videotape in a safety deposit box. While videotaping, discuss exactly what you are filming so you will have these records when you need them. For instance, "This is a 3-year-old oriental rug, bought at Rustigians in 1995 for $2,300. This is my mahogany Ethan Allen coffee table bought in 1993 for $550..." We also suggest keeping receipts or credit card statements
on high value items, such as furniture, jewelry, appliances, rugs, expensive
clothing, etc. and also storing these in your safety deposit box. (Other Questions - Table of Contents) (END OF PAGE) |
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