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Although homeowner's insurance can differ in cost and
coverages between insurance companies, every policy is required by law to be
set up in a similar manner. They all contain two sections, "property coverages"
and "liability coverages." The following is a brief overview of the standard
Homeowner's Insurance Policy:
Property coverages are broken down in
the following manner:
Coverage A - Dwelling Building:
This covers your actual dwelling as well as attached structures, permanently
installed outdoor equipment, fences, walls and gates.
Coverage B -
Detached Private Structure:
Coverage in this section includes detached
garages and storage sheds. You are generally covered in this section for 10% of
the amount of Coverage A.
Coverage C - Personal Property:
This section includes coverage for personal belongings and common household
items. It can be extended for belongings which are off premises as long as they
are only temporarily removed (in vehicle, on holidays, at school, etc.). Most
policies will allow a certain amount of coverage for students' property while
they are away at school. All policies will have exclusions and limits for
certain items. Depending on the type of policy you have, usually 70% of
coverage A is allowed for Personal Property.
Coverage D -
Additional Living Expenses:
If you cannot live in your residence
because of damage to it caused by something which is insured under your policy,
Additional Living Expenses will provide coverage for any increase in living
expenses necessary to maintain your normal standard of living. This can also
include moving and storage costs and is automatically 20% of coverage A.
Liability coverages can be found under Section 2 of your
Homeowner's Insurance Policy and are broken down in the following
manner:
Coverage E - Legal Liability:
This section is
designed to pay for claims that you become legally liable to pay because of
bodily injury or property damage to others. It includes coverage for your
personal activities, the ownership, use or occupancy of your premises and
animals or pets you own or which are in your care. It will also cover claims
which you are legally liable to pay because of property damage to premises or
contents which you rent, use, or are in your care, provided the damage is
caused by fire, explosion, smoke, rupture or water escape, subject to
exclusions. The recommended limit of coverage to carry is at least
$1,000,000.
Coverage F - Voluntary Medical Payments:
lthough you may not be legally liable, your policy will pay for reasonable
medical expenses of others who sustain bodily injury accidentally caused by
your personal activities, your use of your premises or by animals or pets you
own or which are in your care. The amount of coverage automatically included
varies with each insurance company and can be anywhere from $1,000 to
$5,000.
Coverage G - Voluntary Property Damage:
This is
designed to pay for damage to property of others which is accidentally caused
by you, your pets or by intentional acts of your children who are under the age
of 12. The amount of coverage again varies with each company but is usually
around $250 to $500.
Contact Mooney
Insurance Agency Ltd. if you have questions about the standard Homeowner's
Insurance Policy.
For more information, E-mail us at
info@mooneyinsurance.com |
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