Personal Property/Coverage C: Your personal property is generally covered anywhere in the world. If your property is located in another residence owned by you, but not insured, the policy may limit the amount of coverage provided to 10% of the total coverage. Most policies also include limited coverage for improvements or betterments made to the residence by an insured.
There are special limits on certain items such as jewelry, guns, furs, money, cameras, art or antiques, etc. You should review this list found in your policy and speak to your agent about additional coverage if needed.
Coverage is typically issued to cover “named perils” which may include fire or lightning, windstorm or hail, explosion, riot or civil commotion, aircraft, vehicles, smoke, vandalism or malicious mischief, theft, volcanic eruption, falling objects, weight of ice, snow or sleet, accidental discharge or overflow of water or steam, tearing, cracking, burning or bulging, freezing, sudden and accidental damage from artificially generated electrical current, and Catastrophic Ground Cover Collapse. (Sinkhole coverage “may” be purchased by paying an additional premium.)
Coverage can be obtained that settles claims based on the “actual cash value” of the personal property at the time of loss or that settles claims on a “replacement cost” basis. This is something you should discuss with your agent.
-
Actual Cash Value means the cost to replace an item less depreciation. In other words, if damage occurred to a television that had a 10-year life expectancy and you owned the television for 5 years, notwithstanding any deductible, the settlement would be 50% of the cost to replace the television because you had already used 50% of the life expectancy. Your loss consisted of the remaining 50%.
-
Replacement Cost pays for the cost of replacing the damaged or destroyed item. In the example above, with replacement cost coverage, you could replace the damaged television with a new one without a deduction for depreciation if the new one is of the same kind and quality of the damaged one. If you have replacement cost coverage but elect not to replace a damaged or destroyed item, the insurer will likely only pay the actual cash value for the item.
Loss of Use/ Coverage D: Loss of Use provides coverage for additional living expenses and/or fair rental value.
“Additional Living Expense” covers the excess expenses of an insured who must live elsewhere due to a loss to their residence. In many instances, coverage is also provided if a civil authority prohibits you from using the “residence premises” as a result of direct damage to neighboring premises by a covered peril. Additional Living Expense pays only reasonable “excess” expenses until the property is habitable.
As an example, if your family normally spends $200.00 a week for groceries. As a result of the damage to your kitchen, you can no longer cook so all your meals are eaten out. The cost of eating out for your family averaged $400.00 a week. The insurer would pay the difference between the amount you normally spend for groceries and the amount it cost to eat out, which is $200.00.
The additional living expense must normally be incurred prior to reimbursement. Obtaining reimbursement for additional living expenses is always contingent on providing the insurer with receipts. Be sure to save all receipts, regardless of the amount.
Payment will be for the shortest time required to repair or replace the damage or, if you permanently relocate, the shortest time required for your household to settle elsewhere.
“Fair Rental Value” provides coverage if you are a landlord, and the residential property becomes temporarily inhabitable by your tenants due to a covered loss. This coverage would help replace the loss of rents. Please note, the insurer will not reimburse expenses that do not continue while it is not fit to live in.
The payment will be for the shortest time required to repair or replace the residence premises.
Liability/Coverage E: Coverage E covers an insured for amounts they become legally liable to pay due to bodily injury or property damage of others, including the cost of defense. This would not include any property damage or bodily injury to you or any of the other insureds on the policy. This coverage would only be applicable if the property damage or the bodily injury is not intended or expected.
Medical Payments to Others/Coverage F: Coverage F covers medical and other related expenses for members of the public injured through personal activities of an insured, without regard to the insured’s legal liability. For example, if a guest slips on your property, this coverage will help pay for the minor medical expenses sustained for the injuries.
