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Dwelling Coverage
This protects the actual structure, including the heater, wall-to-wall carpets, plumbing, etc. The coverage on the dwelling should be equal to the cost of replacement of the structure. (Do not confuse market value of a property with the cost of replacement.)
Other Structures
This is a coverage extension of 10% of the dwelling amount. It is designed to provide protection for any other structure on the property other than the main dwelling, such as fences, decks, and yard sheds.
Personal Property
This portion of the policy will provide the coverage for your furniture, clothing, appliances, etc. The amount of coverage which you secure should be equal to the replacement cost of the total value of these items. The insurance provided under the policy would protect your belongings if they were damaged because of fire, smoke, theft, water damage from a broken pipe, overflow of a plumbing system, wind, and lightning.
Loss of Use
This portion of the policy would pay for you to live somewhere else if your dwelling was uninhabitable because of a covered loss. This means that if there was a fire, the insurance carrier would pay for a motel room until you could secure a new place to live.
*The property section of the policy has a deductible. The standard deductible would be $500.00. This is the amount you would pay in the event of a loss. The amount applies per loss. The coverage for your belongings would also be on a replacement cost basis. This means that the items would be insured for what it would cost to replace them, not what they are worth when you consider depreciation.
There are also several internal limitations for certain classes of property. There are limitations for the theft of money, jewelry, furs, guns, and silver. They are as follows: Money = $200; Jewelry = $1,000; Furs = $2,500; Guns = $2,500; Silver = $2,000. If you need coverage over these amounts, separate riders may be purchased.
Personal Liability
This is designed to provide coverage for bodily injury and property damage for which you are legally liable. The insurance company would provide a defense and pay up to the limit of coverage selected. An example of when this coverage would be involved would be if your dog bit someone or if you ran into a person riding a bicycle. You would have to injure them or damage their property. There is no deductible for this coverage.
*You may also purchase an additional coverage which is called personal injury. This would include libel, slander, defamation of character, etc. It would carry an additional premium charge.
Medical Payments to Others
This would pay for the medical bills for a situation in which you were involved. It would not require that you be legally liable such as with the liability coverage. There is no deductible for this portion of the policy. |
