Home Insurance

There are some basic coverages on your homeowner’s policy that I want to clarify:

• Dwelling (coverage A): This is the part of your coverage that will rebuild your home if that fire occurs. This amount has been determined by your insurance company to be the reconstruction cost, including materials, labor, debris removal, everything. A lot of policies will have an extended replacement cost (anything from 20% to 50% in addition to coverage A) to make sure your home will be rebuild completely.
• Separate Structures (coverage B): Any sheds, detached garages, greenhouses, gazebos, etc. that are not considered a part of the dwelling. Usually the coverage is 10% of coverage A.
• Personal Property (coverage C): This is the coverage for your possessions. Everything from furniture, jewelry, clothes, appliances, electronics, toys, food, etc. This coverage extends to anywhere in the world. As an example, if someone breaks into your car and steals a laptop, cell phone, and an I-pod, this is the coverage that covers it (not your auto policy unless it is an item that is permanently attached like a stereo or a DVD system). Usually the coverage C is an amount equal to 50% to 75% of your coverage A.
• Loss of Use (coverage D): If that fire burns down your home, you are not going to be able to live there. I hate to say this, but you will still have a mortgage payment to make as well. This coverage helps you in this area. This can help with hotel rooms, eating out, moving expenses, storage expenses, and when you are able to get a rental property to live in, it will cover either the rent or the mortgage payment (whichever is cheaper). Some policies cover you for up to two years, no limit on how much it costs. Some policies will cover you up to 40% of coverage A (which is a lot of coverage).
• Personal Liability: “If your negligence causes injury to someone else,” for example a dog bite, or someone slipping on that sidewalk you forgot to shovel, you will have some coverage to help pay doctors or even protect you in the event of a lawsuit.
• Guest Medical: If a guest at your home suffers an injury that is not your fault, you can have up to $1,000 to help with their medical bills. This coverage is sometimes referred to as the “friend keeper.”

In the state of Colorado, you can elect to waive the uninsured motorist coverage and/or the medical payments. There are certain situations where you may not need those coverages. I would be happy to assist you in making that determination.

Other

I would be happy to go over any other coverages on a policy, including floaters, sewer/drainage backup protection and more, as this page is not nearly large enough to discuss everything!!!!