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What does homeowners insurance cover?
Homeowners insurance is financial protection for your home and your
possessions against damage caused by catastrophic events, but not
careless maintenance. It also covers your liability -- your legal
responsibility, for injury and/or property damage caused by you
or your family members and pets to other people or their property.
What does homeowners insurance not cover?
Earthquake and flood insurance are not covered by a homeowners policy;
they are two separate insurances you will have to purchase if either
of these issues are a concern for you.
What kinds of coverage are available in a homeowners insurance
policy?
Listed below are the general, basic coverage's included by most
insurance firms. Specific terms and coverage will differ from company
to company .
Structure – This coverage pays the
repair or rebuilding costs of your home in case of an insured disaster.
It may
also cover the cost of detached buildings such as a
pole barn or garage.
Personal Property - This part of the policy
covers your possessions, such as furniture, clothing, and other
personal
items against an insured disaster, generally at 50%
to 70% of the structure insurance. You are also covered if you
are away from home, generally up to a certain percentage.
Your landscape items – trees, shrubs, and other plants –
are also covered against insured disasters, again up
to certain percentage of the amount of the structure coverage.
Specialty items including jewelry and furs are
generally insured doe a specific dollar amount. You can obtain special
insurance add-on to insure them for their full value.
To be sure this coverage is sufficient, you should take the time
to
do a home inventory and assess the value of your possessions.
This is the best way to determine what your
possessions are actually worth should you need to replace
them.
Liability - This covers your legal responsibility
and costs if you, a family member, or a pet causes bodily injury
or
property damage to someone else. It also includes a
no-fault medical coverage that allows a person injured on your
property to submit medical bills without filing a claim
against you. Liability coverage includes court costs of a lawsuit
as well as any award up to the policy limit. Generally
limits are about $100,000, but the recommended starting point
is $300,000. You should evaluate your risk with your
agent to determine whether you should purchase an umbrella
policy for broader coverage which usually adds coverage
in $1 million increments.
Living Expenses – In the event of
an insured disaster that makes your home uninhabitable, this covers
your hotel,
restaurant, and other expenses while waiting for your
home to be rebuilt or repaired. It will also reimburse you for lost
rental income if part of the structure is used for
that purpose. The amount of this coverage varies, with about 20%
being the norm.
What amount of reimbursement will I get if I have to rebuild?
This depends on which option you have selected. You should discuss
these options with your agent to understand completely what will
and will not be paid.
Actual Cash Value – pays to replace
your home minus a deductible for depreciation.
Replacement Cost – pays to rebuild/repair
your home or replace your possessions with no depreciation deductible.
Guaranteed Replacement Cost – pays
whatever it costs to restore your home to its state before the insured
disaster
even if the total is over the liability limits. New
regulations or building codes that came into effect after your home
was insured are not covered, but you can obtain an
addition or endorsement to your policy to cover unexpected
costs of this nature.
How is the cost of homeowners insurance determined?
There are many factors considered to establishing the cost of your
policy. They include the size of your home in square footage, detached
structure on the property, the materials used in constructing your
home, the general condition of basic systems, such as electrical,
plumbing and heating, your location, the weather patterns in your
area, how near you are located to fire rescue.
We will gather up information from you to ensure that the cost to
rebuild your home falls into today’s construction cost and
market. We will also do a thorough review of your insurance needs
and ensure you are receiving any/all discounts that you may qualify
for.
How can I select the best policy and insurance company for my
needs?
Sterner Insurance works with over 20 companies. Our experienced
agents can offer you many options and comparative pricing to ensure
you get the best coverage for your budget and your needs. We can
save you the time and effort of contacting several companies, getting
individual quotes, and then evaluating and comparing them. Plus,
we will actively seek ways to manage your premiums by suggesting
options that give you discounts, such as combination auto &
home policies.
What about claims? Do I handle them through Sterner or the insurance
company?
Your agent is always your first source for information on policy
and procedure. Claims information is provided with your policy and
generally indicates that company's appropriate procedure, forms,
and the facts you must have to present a claim. But your agent is
always available to help you through the process.
What if I have a problem with a claim?
If, for some reason, you feel your claim is not being handled appropriately,
we want you to contact your agent first. We may be able to help
you solve the problem or put you in touch with the appropriate person
at insurance company. Many insurance policies include appraisal
and arbitration services to assist in resolving problems with claims.
There are also state and national consumer hotlines for insurance
issues available, as well as independent arbitration services.
Where can I get information about homeowners insurance?
Many of the insurance companies we deal with have websites that
help consumers understand their policies and procedures. Another
good source is the Insurance Information Institute at www.iii.org/individuals
which also contains links to many other information sources. Pennsylvania
also provides information on its website at www.ins.state.pa.us.
For more information, email us at personal@sternergroup.com
or give us a call at 1-888-STERNER
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