Home / Condominium / Renters / And Other Types of Residences
Your Residence Type Matters
Structures vary so widely that a different policy is required for each type of home.
- A Condo policy typically covers interior structures like wallboard and lighting fixtures. Depending on your state, your association by-laws, and insurer, external walls will not be covered.
- A Home's entire structure is covered along with sheds and detached garages.
- A Manufactured Home's entire structure is usually covered, while sheds and garages may require an optional policy.
- A Renters policy usually has no physical structure coverage at all, but it does provide essential liability and contents coverage.
There are at least a few terms you should understand before we explain coverage:
“Replacement Cost” verses “Actual Cash Value” policy: A “Replacement Cost Policy” will cover what it costs to replace your structure (if applicable) or contents loss up to a policy limit. An Actual Cash value policy will take off for depreciation of the property involved in your loss.
And
“All Peril” Verses “Named Peril” policies: An “All Peril” policy will cover every except what is excluded. A “Named Peril” policy will state exactly what is covered.
The best policies are “All Peril” and “Replacement Cost” policies
Dwelling Coverage – Depending on your type of policy dwelling coverage can be usually described as the structure itself along with all the things permanently attached. Condominium policies can actually vary depending on what your association considers structure verses improvements. If your policy includes coverage for the dwelling it will cover the structure for certain perils up to the policy limits chosen and usually has a padding of some sort built in on the structure. You should understand if your policy has replacement cost features to it and what perils are / are not covered. (Hint: remember, on a replacement cost policy you will usually get paid what it would cost to rebuild the home, not the purchase price. This is usually a good way to save money and not be over-insured. Please speak with one of our professionals to Assess your coverage needs and possibly save you money.
Other structure protection – This is coverage for structures that are detached from the home such as a detached garage, shed, or swimming pool.
Personal property protection – can be described as follows: If you were strong enough to pick your home up and turn it upside down, and shake it; anything that would fall out would be considered personal property. Things like furniture, clothes, electronics, etc are covered under this part of your policy. (Hint: there can be limitations on certain personal property like jewelry and electronics that may require additional coverage to be purchased. Electronics these days is coverage we often find under-insured. Please call one of our professionals and have them Assess your coverage needs. The time of loss is not the time to find out that you don’t have enough coverage. Please speak with one of our professionals to find the most cost effective way to make sure you are covered.
Family liability protection – provides liability coverage for you and your family. If you are liable for someone being injured on your property this is the part of your policy that will pay the damages. This even covers you off - premise like on the golf course, at the coffee shop or if your dog bites someone, etc. *PLEASE NOTE THAT CERTAIN LIABILITY COVERAGES ARE EXCLUDED FROM MANY POLICIES! Please call one of our professionals so they can Assess your coverage needs. This is a major coverage that you don’t want to get wrong. It is also a common area where you may be double covered with another policy and coordinating your coverage can save you $$$$.
Additional living expense – If your home is found to be un-livable due to a covered loss & you have to stay in a hotel or dine out instead of being able to cook at home; this part of your policy will pay a reasonable increase in expenses for a period of time or a dollar amount of coverage.
Additional coverages and considerations – Water / sewer backup sometimes can be purchased for an additional premium as well. Please be careful as different insurance companies have different limitations on this coverage. Many people have thousands of dollars invested in their ground level family rooms. It is critical that you understand this coverage and the limitation of your insurance carrier. Please call one of our professionals so they can Assess your coverage needs to avoid any costly surprises.
Please note: Flood is different from water backup coverage. A LOSS CAUSED BY A FLOOD IS NOT COVERED BY A REGULAR HOME / CONDOMINIUM OR RENTER POLICY. A SEPARATE FLOOD POLICY IS NEEDED TO COVER SUCH A LOSS. It is also important to note that most flood claims do not occur in high risk flood zones. They happen in normal neighborhoods. Winter storms with ice covering drainage and new developments changing drainage patterns are common causes of home flooding. Please call one of our professionals so they can Assess your coverage needs and see if a flood policy is right for you.