ABC’sand123’sofHomeownersInsurance<br />
Determine Dwelling Limit<br />Market Value- The amount someone would 			pay for the property<br />Assessed Value- The amou...
Why is Dwelling Limit Important?<br />Dwelling Value provides the limit the policy will pay in the event of a total loss. ...
Example #1<br />RC of Dwelling $500,000<br />Dwelling Limit on policy $300,000<br />Partial Loss:  $30,000<br />Did	300,00...
Coverage A  Dwelling<br />We cover:  The dwelling on the residence premises, including structures attached to the dwelling...
Coverage BOther Structures<br />We cover other structures on the “residence premises” set apart from the dwelling by clear...
Coverage CPersonal Property<br />“ We cover personal property owned or used by an “insured” while it is anywhere in the wo...
Coverage D Loss of Use	<br />Provides at the time of a covered loss:<br />Additional Living Expenses:  increase in normal ...
Additional Coverage<br />Debris/Tree Removal			$500<br />Trees Shrubs & Plants 			$500 max<br />Credit Card/Fund Transfer ...
Coverage E-  Personal Liability<br />“If a claim is made or a suit is brought against an “insured” for damages because of ...
Includes prejudgment interest
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Abc’S And 123’S Of Homeowners Insurance

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Introduction to Homeowners Insurance

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Abc’S And 123’S Of Homeowners Insurance

  1. 1. ABC’sand123’sofHomeownersInsurance<br />
  2. 2. Determine Dwelling Limit<br />Market Value- The amount someone would pay for the property<br />Assessed Value- The amount on which taxes are based<br />Replacement Cost-The amount it would cost to rebuild the house from ground up in event of a total loss<br />
  3. 3. Why is Dwelling Limit Important?<br />Dwelling Value provides the limit the policy will pay in the event of a total loss. <br />Subject to co-insurance. 100% 90% or 80%. <br />If Dwelling is not insured to value at the time of a lossthen a Co-Insurance Penalty is applied:<br />Co-Insurance Penalty<br />Did<br /> Should X Loss – Deductible = Claim Payment<br />
  4. 4. Example #1<br />RC of Dwelling $500,000<br />Dwelling Limit on policy $300,000<br />Partial Loss: $30,000<br />Did 300,000<br /> Should X Loss 500,000 60% X 30,000=<br />Claim Payment is<br />$18,000 less deductible<br />
  5. 5.
  6. 6. Coverage A Dwelling<br />We cover: The dwelling on the residence premises, including structures attached to the dwelling and<br />Materials and supplies located on or next the residence premises used to construct, alter or repair the dwelling or other structures on the residence premises. <br />We do not cover land.<br />
  7. 7. Coverage BOther Structures<br />We cover other structures on the “residence premises” set apart from the dwelling by clear space. This includes structures connected to the dwelling by only a fence, utility line, or similar connection……<br />10% of Dwelling Limit. Limit can be increased for additional premium.<br />Examples of other structures:<br />
  8. 8. Coverage CPersonal Property<br />“ We cover personal property owned or used by an “insured” while it is anywhere in the world. <br />50% of Dwelling Limit<br />Can be increased for additional premium<br />After a loss and at your request, we will cover personal property owned by:<br /> others while the property is on the part of the “residence premises” occupied by an insured OR a guest while the property is in any residence occupied by an “insured”<br />This is limited to 10% of coverage C or $1,000 which ever is greater.<br />Special Limits on Personal Property<br /> Money, Bank Notes $ 200 <br /> Securities $1,500<br /> Watercraft inc Trailers $1,500 <br /> Trailers $1,500 <br />Theft of Jewelry Watches Furs $1,500 <br />Silverware Theft $2,500 <br />Firearms Theft $2,500 <br />Business Property off Premises $ 500<br />Business Property on Premises $2,500 <br />Elect Apparatus in vehicle dual $1,500 <br />
  9. 9. Coverage D Loss of Use <br />Provides at the time of a covered loss:<br />Additional Living Expenses: increase in normal daily living costs until normal repair or replacement can be made<br /> 30% of Dwelling Limit- Is this sufficient?<br /> Can be increased<br />Loss of rental income-<br />Civil Authority<br />
  10. 10. Additional Coverage<br />Debris/Tree Removal $500<br />Trees Shrubs & Plants $500 max<br />Credit Card/Fund Transfer $500<br />Fire Dept Service Charge $500<br />Loss Assessment $1,000<br />Landlords Furnishings $2,500<br />Ordinance & Law 10% Dwelling<br />Grave Markers $5,000<br />
  11. 11. Coverage E- Personal Liability<br />“If a claim is made or a suit is brought against an “insured” for damages because of “bodily injury” or “property damage” caused by an “occurrence” to which this coverage applies”.<br /><ul><li>Insured must be legally liable
  12. 12. Includes prejudgment interest
  13. 13. Defense costs are in addition to the limit
  14. 14. Duty to defend ends when policy limit is exhausted by payment of judgment or settlement.</li></li></ul><li>Coverage F- Medical Payments<br />“We will pay the necessary medical expenses that are incurred or medically ascertained within three years from the date of an accident causing “bodily injury”.<br /> Reasonable medical, surgical, x-ray, dental, ambulance, hospital, professional nursing, prosthetic devices and funeral services.<br />Does not apply to you or regular residents of your household<br />Subject to policy limit<br />

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