|
|
| |
|
Large Enough
To Handle
The Most
Complex Of
Risks,
Yet Small
Enough To
Care!
|
| |
Who decides what insurance to get when I make my house payment:
the mortgage company or me?
|
|
You do. The mortgage
company collects a set amount from you each month in order to protect their
investment. This money is put in escrow and covers your insurance and tales
when they fall due. However the policy is still yours and you may select the
insurance you feel offers the best coverage at the best rates. In fact, if
you allow the mortgage company to choose, you might well end up paying more
for your homeowners insurance.
|
| |
What
exactly does a homeowners policy cover?
|
"Exact" coverage is tricky to define because there are different policies
and about 900 insurance companies writing most of the property/casualty
business in the United States. However, 80 percent of homeowners policies
are based on standard form. All homeowners policies cover two important
areas: property and liability.
These cover your structures and possessions - property insurance - and
protect against personal liability. Personal liability, as its name implies,
means you are legally obligated to pay money to another person for actions
caused by you, your family, or your property. That liability extends to
medical payments to others for injuries caused by you or your family. |
Are
floods, earthquakes, and other natural disasters covered?
|
| Most
catastrophes are covered: flood and earthquake damage. however, are not
covered by a standard policy and both are more common than many people
realize. Check with your agent about special catastrophic policies for
normally excluded conditions like floods and earthquakes. |
Are
there exclusions I should know about?
|
|
Most catastrophes
are covered: flood and earthquake damage. however, are not covered by a
standard policy and both are more common than many people realize. Check
with your agent about special catastrophic policies for normally excluded
conditions like floods and earthquakes.
One other exclusion that
can be costly is the Ordinance or Law exclusion. Building codes established
by governmental bodies that drive up the cost of rebuilding or repairing
after a loss occurs may not be covered by your insurance policy. Thus, if
you discover when replacing damaged property that current law demands higher
grade or more expensive materials than the original ones being replaced, the
materials may not be covered for the full price. |
|
