What is covered under a homeowner policy?
A homeowner policy is divided into two categories; Section I - Property coverage & Section II Liability coverage. The property coverage is further subdivided into four sections. Once the replacement cost of the house is established, the other coverage amounts are percentages of the house value.

Section I-Property

Coverage A is for the dwelling- the house itself. Replacement value is established by doing a home cost estimator. This is a formula in which we enter specifics about your house such as square footage, special features and construction materials.
Coverage B is for other structures or “Appurtenant Structures” and is 10% of Coverage A. This covers detached garages, or other outbuildings, fences, swimming pools, etc.
Coverage C is for contents. This is 70% of coverage A on a replacement cost policy. This covers your furniture, clothing, appliances, TV, etc. Please note: There is limited coverage for jewelry & collectibles.
Coverage D is for loss of use, and is 20% of Coverage A. This pays for living expenses incurred while your home is uninhabitable following a covered loss.

Section II-Liability

Coverage E is liability coverage. It protects you and your family against a claim or lawsuit if someone is injured, or his property is damaged while at your home.
Coverage F is medical payments. It is included as part of injuries to others.


How do I cover my jewelry or other valuables?
The best way to cover jewelry, collectibles, firearms, etc. is to purchase an Inland Marine rider or policy. Coverage is much broader. One peril that is covered within this type of policy is mysterious disappearance. An insured is covered when a piece is lost, or if she loses part of a set. Theft does not have to be proven as the cause of loss. For example: If a diamond is lost from a ring’s setting, this is mysterious disappearance, and is therefore covered under the Inland Marine policy.

How does a policy pay for trees?
A homeowner policy provides a limited amount of money (usually $500) for tree removal if that tree falls onto a covered structure, or if it falls across a driveway making it unusable to the insured. There is no coverage for preventative work such as cutting down a tree that looks like it might hit the house during the next ice storm or windstorm. This falls under the homeowner’s responsibility as normal maintenance, just like keeping the home in good repair.



Does my child have coverage for his contents at college?
Typically, a full-time student college student under the age of 23 automatically has coverage for 10% of his parents’ contents coverage if he lives in a college dormitory. If he lives in an apartment not affiliated with the school, he should purchase a renters policy. This usually costs no more than $100 per year, and it offers both property and liability coverage.

What is an umbrella policy?
An umbrella policy is also known as an excess liability policy. Coverage starts at 1 million dollars and up. This is called an umbrella policy because its coverage picks up where the limits to the underlying policies including home, auto motorcycle, boat, etc., end. For instance, if you are at fault in a fatal auto accident, and the family of the deceased sues you for one million dollars, your auto policy would pay for bodily injury until its limit is exhausted, then the umbrella would pick up the difference from there. Insurance companies do require that the underlying policies have certain minimum liability limits to have umbrella coverage. Generally, $300,000 is required for the homeowner policy, and at least 250/500/100 limits for auto.

What isn’t covered?
Flood, intentional loss, neglect, damage from long-term water seepage, among others, are not covered. Consult your policy for more details.

What about mold?
Homeowner policies limit coverage to $5,000 for anything pertaining to a mold claim, including loss to property, loss of use, testing and remediation. This applies only if the mold is caused by a covered peril. No additional coverage is available for purchase at this time.