by Holly Heurkins, Insurance Agent, AAA
Insurance, whether homeowners or renters insurance, is there to help protect your assets in the event of a covered loss. It’s important to understand your coverage before you experience a loss!
I find many people are premium shopping, and once they land that great price they grab and go with an insurance policy, never to look at it again until they need to make a claim. Still, you may not thoroughly understand what the policy does or doesn’t do for you. Frankly, who wants to snuggle up to a 50-plus page document when you have an agent?
This is where I come in. Briefly I am going to give an example of what the typical home policy covers. Here is a snap shot of a Declaration Page.
Coverage A Dwelling Coverage Limit for your home, not taking into account the extended replacement cost at either 100 percent, 125 percent, 150 percent or Comprehensive Replacement Cost also known as ACV.
Coverage B Other Structures Detached from the home such as garage, other buildings, walls, fences, barns, swimming pool, driveway (pavers). Standard limit is 10 percent of Coverage A.
Coverage C Coverage for your personal property. This coverage insures all of your belongings. This is an essential coverage when the interior of the home sustains damage. I describe it as if you took your home, turned it upside down and see what falls out (and is not attached)!
Coverage D Loss off Use. This coverage is only used if your home is damaged to the extent that you can no longer live in it. For example, if a pipe bursts and floods the home, and it causes you to live in a hotel for a couple of months while the home is being repaired. The loss-of-use coverage will reimburse you for expenses such as food, lodging, gas, etc.
Coverage E Personal Liability. This coverage protects you from instances in which you are liable for negligent actions. Damage to other people’s property, personal liability and medical expenses suffered by others.
Coverage F Medical payments coverage on a homeowners’ insurance policy is similar to medical payments on an auto insurance policy. This coverage is to pay medical bills for those who get injured while on your property.