How Much Coverage Do I Have On My Personal Property ?

Homeowners insurance is designed to cover general personal possessions, not
valuable collections like antiques, jewelry or original art.  Insurance companies
deliberately limit their coverage of expensive possessions so that household
premiums are more affordable for everyone. Otherwise we would all end up
paying higher premiums to cover those expensive items.

Certain catagories of personal property have what is called "Special Limits."
Those limits can vary from policy to policy so the following are only examples of
what might be on your policy.  Check your policy or ask your agent for the limits
on your policy.

$200 for money, bank notes, bullion, gold and silver (other than goldware and
silverware), platinum, coins, and medals.

$1,500 on securities, accounts, deeds, evidences of debt, letters of credit,
notes (other than bank notes), manuscripts, passports, tickets, and stamps.

$1,500 on watercraft, including their trailers, furnishings, equipment and
outboard motors.

$1,500 on trailers not used for watercraft.

$1,500 for loss by theft of jewelry, watches, furs, precious and semiprecious
stones.

$2,500 for loss by theft of firearms.

$2,500 for loss by theft of silverware, silver-plated ware, goldware, gold-plated
ware and pewterware.

$2,500 on property on the resident premises, used for business, and $500 on
this property damaged or lost away from the premises.

$1,500 on electronic apparatus and accessories, while in or upon a "motor
vehicle", but only if the apparatus is equipped to be operated by power from the
"motor vehicle's" electrical system while still capable of being operated by other
power sources.   Accessories include antennas, tapes, wires, records, discs or
other media that can be used with any apparatus described in this category.

$1,500 on electronic apparatus and accessories used primarily for "business"
while away from the "residence premises" and not in or upon a "motor vehicle".
The apparatus must be equipped to be operated by power from the "motor
vehicle's" electrical system while still capable of being operated by other power
sources.  Accessories include antennas, tapes, wires, records, discs or other
media that can be used with any apparatus described in this category.
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HOME INSURANCE FREQUENTLY ASKED QUESTIONS

PLEASE NOTE: These Answers Are For General Insurance Questions.
You MUST Contact Your Agent For Answers Pertaining To Your Particular
Situation.  

What Does The Homeowners Policy Cover?

The homeowners policy is a package policy designed for a single family home.
Most packages include liability, dwelling property, personal property, medical
payments and additional living expense coverage.

Policies do vary, however, in what events (perils) you are protected against.
There are two general approaches: a named peril basis, which insures against
a list of perils, and an open peril basis, which insures against all perils except
those specifically excluded.

What Are The Named Perils?

Basic Coverage Perils: Fire; Lightning; Windstorm; Hail; Explosion; Riot or Civil
Commotion; Aircraft; Vehicles; Smoke; Vandalism and Malicious Mischief; Theft;
Breakage of Glass.

Broad Coverage Perils: All of the above basic coverage perils and Volcanic
Eruption; Falling Objects; Weight of Ice, Snow or Sleet; Collapse of Building;
Accidental Discharge of Water or Steam; Sudden or Accidental Tearing Apart;
Cracking; Burning; or Bulging; Freezing; or Sudden or Accidental Damage from
Artificially Generated Electrical Current.

What Types Of Property Are Covered By A Homeowner Policy?

On your residence premises, the real property will be covered. This includes
the dwelling and any unattached structures including fences. Your Personal
property is also covered. This includes the contents of your dwelling, clothing,
furniture, appliances and all other normal personal belongings. Note: some
items of personal property like jewelry, guns, furs, golf equipment, etc., may
have a limit on the amount of coverage. It may be necessary to put additional
coverage on these items by scheduling them to the policy.   Automobiles are
not covered.

What Is "Actual Cash Value"?

When "actual cash value" is used in a policy, a policy owner is entitled to the
depreciated value of the damaged property.

What Is Replacement Cost"?

When "replacement cost" coverage is used in a policy, a policy owner is
reimbursed an amount necessary to replace the article with one of similar type
and quality at current prices.

How does the homeowner policy pay for loss damage to a roof?

Generally, the roof, which is part of the dwelling, is covered on a replacement
cost basis (less your deductible).  However, homes with a very old roof or a
severely damaged roof may have restrictions limiting coverage to actual cash
value instead.  In addition, some companies have policies that change the
coverage from replacement cost to actual cash value after a roof gets to be a
certain age (i.e. 10-15 years). Check with your agent to be sure what level of
coverage you have on your roof.

Does the homeowners policy cover flood damage?

No, the homeowners policy specifically excludes water damage. This exclusion
includes flood, surface water, waves, tidal water, overflow of a body of water,
water that backs up from sewers, drains or sump pumps, water that seeps
through the basement walls and floors. Note: Water damage caused by a broken
pipe in the house would be covered.  The National Flood Insurance Plan is the
only source to get flood insurance for residential property.  Your agent should
be able to assist you if you need to carry flood coverage.