Tabitha E. Walker Insurance Agency Join Our Newsletter Submit A Claim blogs Make A Payment Referrals Facebook Follow on Twitter LinkedIn
Alternate Content
Get A Quote


By David Goodboy 

You have just bought a new home and obtained the homeowners policy recommended by your agent. But do you fully understand what a homeowners policy is and what else you may need to be a responsible and fiscally-safe homeowner? This article will explain exactly what homeowners insurance is and what it means to schedule items for personal property coverage on your policy.

Homeowners insurance, often referred to as HOI, is a form of property insurance specifically for private dwellings. It is a combination of property and liability coverage. The property protection section is divided into four separate divisions:

1. Dwelling

This covers the house and everything attached to it. This includes pipes, electrical systems, fireplaces and even attached appliances if they are connected permanently to the house.

2. Other Structures

This covers all other structures on the land surrounding the home. This can include sidewalks, fences, patios, garages, storage sheds and basically anything in your yard.

3. Personal Property Coverage

This can include everything within your home, whether owned by you or a family member residing with you. The personal property coverage policy can be actual cash value or replacement cost. Actual cash value means the policy will pay what the item is estimated to be worth at the time, regardless of what it costs to get a new one. Replacement cost will pay the amount needed to replace the item, regardless of its actual cash value.

4. Loss of Use

Loss of Use pays for your living expenses should your new home become uninhabitable. For example, if you have severe wind damage, the policy will pay for a hotel and meals until your home is repaired and able to be lived in again.

Scheduling of Personal Items

The situation that most often is neglected on homeowner policies is the scheduling of personal items. The regular policy covers expensive personal items only up to a certain limit. If you own jewelry, art, furs, or any other valuable that exceed this single limit, it's smart to schedule the item on your homeowners policy.

To "schedule" the item is to specifically list it and its value so that the item can be covered. All homeowners insurance companies are different, but be prepared to pay about $25 per thousand per year for each scheduled item. For example, if you own a Rolex watch worth $10,000, it will cost $250 per year to insure it. Most companies demand an appraisal and photo of the item prior to scheduling it. If you don't schedule your valuables, your policy will just pay up to the total per item limit for any losses. This can be quite low; therefore it's wise to schedule all your valuables. As always, it's smarter to be safe than sorry!

(Source)

Share |


No Comments


Post a Comment
Name
Required
E-Mail
Required (Not Displayed)
Comment
Required


All comments are moderated and stripped of HTML.
Submission Validation
Required
CAPTCHA
Change the CAPTCHA codeSpeak the CAPTCHA code
 
Enter the Validation Code from above.
NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive


View Mobile Version
Home Page
About Us
Free Quotes
Referrals
Contact Us
Visit our mobile site
Tabitha E. Walker Insurance Agency

385 Garrisonville Rd., Suite 105
Stafford, VA 22554
 
PH: 540-657-5633 | FX: 540-657-5636


Licensed in Virginia, Maryland, Washington DC
Tabitha E. Walker Insurance Agency
Home Page