Homeowners Insurance: Do you Know Your Coverages?

Article by: Carmel Booth of Booth Insurance Group

For most people, their home is their single most valuable possession and their biggest investment. Homeowners insurance protects your investment as well as your family and your household possessions. If you suddenly lose your home due to fire or natural disaster, or the contents are damaged or stolen, you probably couldn’t afford to replace everything all at once. If you are sued because of injury or damage caused by you on your property, the cost of defending that suit could run into thousands of dollars in legal fees regardless of the outcome of the suit.

Most homeowner’s insurance policies have features that allow you to custom design a policy that’s right for you. Traditional homeowners programs offer protection for your home’s structures, protection for your personal property, and liability coverages.

Standard Homeowners Insurance Coverage

• Home Replacement Cost = Up to policy limits or other loss settlement clause

• Personal Property Replacement Cost = Optional

• Personal Property (contents) – % of Dwelling Coverage = 50 – 70%

• Additional Living Expenses – % of Dwelling Coverage = actual loss or up to 12 months depending on carrier

• Building Structures Not Attached – % of Dwelling Coverage = 10%

• Personal Injury Liability = Optional

• Business Property Off Premises = $250

• Business Property On Premises = $2,500

• Computers = Included for certain perils

• Debris Removal = Included with certain limits

• Fire Department Service Charges = $500

• Manuscripts = $1,000

• Money, Etc. = $200

• Theft of Firearms = $2,000

• Theft of Jewelry, Furs, Watches = $1,000

• Theft of Silverware and Goldware = $2,500

• Trees, Plant, Shrubs (up to $500 each) = 5% of Dwelling Coverage

• Watercraft and Trailers = $1,000

In addition to our standard homeowner’s insurance coverage, we offer a wide range of additional optional coverages that can be added to your policy. These coverages can enhance the protection of your home and personal property, as well as extend additional protections for liability and related risks. The list below outlines our standard policy and most common optional coverages.

We urge you to review the below optional endorsements. If the coverage does not appear on your Declarations Summary, it is not included in your policy.

Homeowners Insurance Coverage – Optional Endorsements

Extended Replacement Cost on Dwelling – This endorsement can be used to increase Coverage A (dwelling) by either 25% or 50 % to better accommodate a customer’s needs.

Replacement Cost on Personal Property – This endorsement protects the customer from receiving a depreciated value for their personal property. Instead, contents will be replaced with new items of like kind and quality.

Fire Alarm Credit – Policyholders may receive a discount for having protective items such as fire/burglar alarms and/or fire sprinkler systems.

Companion Policy Discount – For policyholders with current companion products, we offer a discount for their continued patronage.

Additional Limits of Liability – This endorsement provides additional Coverage A (dwelling) when a covered loss occurs and the cost to rebuild the dwelling exceeds the limit of liability. Then and only then, are coverages B, C and D increased by the same percentage.

Increase Wind & Hail Deductibles – By increasing the deductible for these types of losses, the policyholder may lower the cost of annual insurance premium. For example, increasing the regular $500 deductible to a $1000, 1% or 2% may decrease the annual premium significantly.

Increase Limits on Other Structures – Provides additional limits for Coverage B if needed. Only structures on the insured premises apply. You may increase up to double the original Coverage B amount.

Water Back up and Sump Overflow – Covers direct physical loss due to water backing up through sewers or drains and water which overflows from a sump. This is not a flood coverage, which requires a separate policy.

Increased Limits on Personal Property – This endorsement offers the insured the ability to increase certain personal property coverages from the standard homeowner’s limit. For example, a basic homeowner’s policy that insures jewelry may need additional coverage added to protect their investment.

Increased Limits on Business Property – For additional premium, this endorsement may increase the coverage for “business” property on the “residence premises”.

Scheduled Personal Property – For an additional premium, we offer open perils coverage for items such as jewelry, furs, cameras, musical instruments, silverware, fine arts, and golfer’s equipment. Not subject to a deductible, these items would be covered for the appraised value.

Special Computer Coverage – For an additional premium, this would broaden the coverage for your computer due to direct physical loss. For example, if the policyholder drops a glass of water on the computer, this would be covered. This endorsement is subject to the policy deductible.

Identity Theft – This endorsement is for expenses incurred by the insured as a direct result from identity theft.

Loss Assessment Coverage – Specially designed for condominium owners, this coverage provides protection for assessments made by a condominium association resulting from loss to the property. The policyholder can choose the limit of coverage they wish

Watercraft – This endorsement extends the limit of liability on your homeowner’s policy to your watercraft. This does not cover for the physical loss of the watercraft.

Personal Injury – With this endorsement, you can extend the limit of liability on your homeowner’s policy to cover you against libel, slander, wrongful eviction and invasion of privacy.

Additional endorsements and credits are subject to availability and qualification.

Booth Insurance Group is here to help with all your insurance needs. Please give us a call today for an insurance review.

Carmel Booth




posted: Jan 30, 2012 | No Responses

Posted by:  Wakamo & Associates

Melissa Wakamo and her dynamic team of agents and support staff provide buyer and seller clients with exceptional service and proven results. Since the start of her real estate career in 2004, Melissa has proven to be a true advocate for her clients and has consistently performed in the top 1% of agents

“When I started my real estate career, I wanted to work in my local community and get to know my neighbors. Now, I realize how important that local expertise is to our clients. At Red Robin REALTORS®, all of our agents are specialists in working with buyers and sellers in Atlanta’s intown neighborhoods.”

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