The difference between catastrophe and coverage often comes down to someone taking the time to explain your options.
In this spirit, we have provided the following preliminary guide to help clarify and aid you in understanding some of the more frequently-used home insurance terms on your policy:
Dwelling (Coverage A): covers your house and attached structures for accidental direct physical loss except the losses excluded by the policy. This includes built-in or attached items such as appliances or wall-to-wall carpet.
Other Structures: covers other buildings or structures on your property that are separated by clear space from your house. Examples include a detached garage or a gazebo. This plan covers you for accidental direct physical loss to the structure except as excluded or limited by the policy.
Contents: covers your personal property. Personal property includes furniture, clothing and items that are not attached to or built into your home. This plan covers these personal items against loss due to specific causes due to fire, smoke, wind, theft and other causes as described by the policy.
Personal Liability: covers damage to others for which you are held liable except as limited or excluded by the policy.
Medical Payments to Others: pays for medical or funeral expenses of others who may be injured on your property or caused by your activities on or off your property.
Loss of Use: pays for reasonable living expense if you are not able to reside in the home due to a covered loss.
Flood: pays as a result of a covered loss from flooding per National Flood Insurance Program (NFIP) definition of flood. There is limited flood coverage in basements and walkouts. FYI: Homeowners policies exclude flood coverage.
Other Coverages & Features:
Replacement Cost Plus: can pay up to an additional 20% of the dwelling coverage limit if your home is a total loss and additional money is needed to reconstruct your home.
Extended Replacement Cost on Contents: pays to replace or repair your personal property without depreciation being taken from the value of your property.
Functional Replacement Cost: settles losses to your home or other structures with common construction materials and methods in place of obsolete, antique or custom materials used in the original construction. In some states, this cost is applicable for homes built prior to 1946.
Ordinance or Law: pays for increased expenses to rebuild due to current building codes or ordinances. (i.e., current zoning may require all new construction on your property to have sprinkler systems, etc.)
Water Backup of Sewers: broadens the coverage for loss due to water backup through sewers or drains.
Scheduled Personal Property: provides additional coverage for personal property of higher values such as jewelry, watches, furs, etc.
Identity Theft: pays up to a specified amount for expenses incurred while restoring your identity and includes a service aspect to assist you with all tasks to restore you identity. Credit monitoring for early detection is available by enrollment.
Earthquake: provides additional coverage for your home, other structures and personal property due to earthquake damage. A separate deductible applies.
At TrueNorth, we believe that creating value for our clients starts the moment we engage.
With a personalized approach, we listen, learn and then support each individual and their unique needs in an efficient and educational conversation. Find out more about what sets us apart by calling us at (800) 798-4080 or introducing yourself to us via our Contact Us page.