Why do I need homeowners insurance?

What should I consider?

What do my coverages mean?

A policy can be quite complicated.  Here we will try to help you better understand what everything means.

• Coverage A - Dwelling, covers:

The dwelling on your premises, including structures attached to your dwelling (i.e. This is your house and anything else like a patio or garage that is directly attached to your house).

Any materials and supplies that may be next to your dwelling used to construct, alter or repair your dwelling or other structures on the premises (i.e. This covers the saws, drills, etc used to update your house).

• Coverage B - Other Structures, covers:

Other structures on the premises set apart from the dwelling by clear space.  This includes structures connected to the dwelling by only a fence, utility line or similar connection.  This does not include the land that these other structures are located on (i.e. A separate garage, pool house, etc).

Does not cover other structures:

Used whole or in part for business.

Rented or held for rental to any person not living in the primary dwelling, unless used solely as a private garage.

The limit of coverage will not exceed 10% of your limit of liability set forth by Coverage A.
 

• Coverage C - Personal Property, covers:

Personal property owned or used by an insured while it is anywhere in the world.  At the insured's request, personal property can be covered that is owned by: others while the property is part of the premises occupied by the insured; a guest or resident employee while the property is part of any residence owned by the insured

There are many "Special Limits of Liability."  These cover such things as money, bank notes, securities, deeds, personal records, passports, watercraft, trailers not used with watercraft, jewelry, precious metals, property away from the premises, compact discs, etc.

These do not cover such things as animals, motor vehicles or other motorized land conveyances, aircraft and parts, property of any tenants, business data, etc.

To get more details, read the "Definitions" section under "Coverage C - Personal Property."
 

• Coverage D - Loss of Use, covers:

Additional living expenses you incur should your home become unlivable due to a covered loss.

• Additional Coverages

Debris Removal:

Will pay for the reasonable expense for the removal of: debris if caused by a Peril Insured Against; ash, dust or particles from a volcanic eruption that has caused direct loss to a building or property contained in a building.

Will pay up to $500 for the removal of: your tree(s) felled by a windstorm, hail, weight of ice, snow, sleet, or a neighbor's tree (provided it damages a covered structure)

Reasonable Repairs:

In the event that the covered property is damaged by an applicable peril, Reasonable Repairs will pay for the reasonable cost incurred by you for necessary measures taken solely to protect against further damage.  This will also cover other damaged property that is covered under this policy.  

Trees, Shrubs and Other Plants:

Will cover trees, shrubs, plants or lawns on the premises.  

Will pay up to 5% of the limit of liability that applies to the dwelling.  No more than $500 of this limit will be available for any one tree, shrub or plant.  Will not cover property grown for business purposes.  

Fire Department Service Charge:

Will pay up to $500 for your liability assumed by contract or agreement for fire department charges incurred when he fire department is called to save or protect covered property from a peril covered against.  

Property Removed:

Will insure covered property against direct loss from any cause while being removed from a premises endangered by a peril insured against and for no more than 30 days while removed  (i.e. If your property is destroyed in any way and elements of your damaged property must be removed, this will cover the costs for that damaged property to be removed for up to 30 days).

Credit Card, Fund Transfer Card, Forgery and Counterfeit Money:

Will pay up to $500 for:

The legal obligation of an insured to pay because of the theft or unauthorized use of a credit card(s);

Loss resulting from the theft or unauthorized use of a credit cards(s);

Loss resulting by forgery or alteration of any check or negotiable instrument;

Loss through accepting, in good faith, counterfeit United States or Canadian paper currency.

Loss Assessment:

Will pay up to $1000 for your share of loss assessment charged during the policy period against you by a corporation or association of property owners, when the assessment is made by a direct loss to the property, owned by all members collectively, caused by a peril insured against under "Coverage A" other than earthquake or land shock waves or tremors before, during or after a volcanic eruption (i.e. When damage occurs as a result of a covered peril, that damage must be assessed.  This coverage will pay up to $1000 of the cost to assess that damage).

Collapse:

Will insure you against direct physical loss to the covered property involving collapse of a building or any part of a building caused only by one or more of the following:

Perils insured against in "Coverage C."  These perils apply to covered buildings and personal property for loss insured by this additional coverage;

Hidden decay;

Hidden insect or vermin damage;

Weight of contents, equipment, animals or people;

Weight of rain which collects on a roof;

Use of defective material or methods in construction, remodeling or renovation if the collapse occurs during the course of the construction, remodeling or renovation.

Loss of awning, fence, patio, pavement, swimming pool, underground pipe, flue, drain, cesspool, septic tank, foundation, retaining wall, bulkhead, pier, wharf or dock is not included under the aforementioned items, unless the loss is a direct result of the collapse of a building.

Collapse does not include settling, cracking, shrinking, bulging or expansion.

Glass or Safety Glazing Material:

Will cover:

The breakage of glass or safety glazing material which is part of a covered building, storm door or storm window;

Damage to covered property by glass or safety glazing material which is part of a building, storm door or storm window.

These are not covered if the dwelling on the premises has been vacant for more than 30 consecutive days immediately before the loss.  A dwelling be constructed is not considered vacant.

Landlord's Furnishings:

Will pay up to $2500 for your appliances, carpeting and other household furnishings, in an apartment on the premises regularly rented or held for rental to others, for loss caused only by the following perils:

Fire and lightening;

Windstorm or hail;

Explosion;

Riot or civil commotion;

Aircraft;

Vehicles;

Smoke;

Vandalism or malicious mischief;

Falling objects;

Weight of ice, snow or sleet;

Accidental discharge or overflow of water or steam;

Sudden and accidental tearing apart, cracking, burning, or bulging;

Freezing;

Sudden and accidental damage from artificial generated electrical current;

Volcanic eruption.

The $2500 limit is the most that will be paid in any one loss regardless of the number appliances, carpeting or other household furnishings involved in the loss.
 

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