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Frequently Asked Questions for Home Insurance...
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What is the difference between Market Value and Replacement Cost? How does it affect my insurance coverage? |
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Market value is the price that a house, including land , could normally sell for . Replacement cost is today’s cost to rebuild or replace a structure with materials of like kind and quality. Insurance to 100 percent of the home’s replacement cost is necessary if you are to completely rebuild your home in the event of a total loss. When the market value of a house is much lower than its replacement cost, the amount of insurance could be based upon the market value of the home. A homeowners HO OO 08 Modified Coverage Form policy may be written when this situation occurs.
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How will I know whether my policy provides named perils or all risk coverage? |
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In the Perils Insured Against Section of your policy, either the perils will be specifically listed (Named Perils coverage) or state that coverage is being provided against risks of direct physical loss except those specifically excluded (All Risk coverage). Depending on the type of policy, “ named perils” coverage or “all risk” coverage could apply separately to the different properties protected by the policy. For example, “all risk” coverage could apply to the dwelling, while “named perils” coverage could apply to the contents.
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What s provided by liability coverage in my policy? |
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Homeowners policies provide liability coverage if a claim is brought against an insured for damages because of bodily injury or property damage caused by an occurrence to which this coverage applies. Payment will be made up to the limit of liability for the damages for which the insured is legally liable. (see your policy for applicable exclusions.)
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Does jewelry need special insurance coverage? |
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Homeowners policy provide coverage for theft of jewelry, subject to a dollar limitation and deductible . If you qualify, additional coverage, providing specific insurance, can be written on an inland Marine Floater or Personal Articles Coverage Endorsement.
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What other personal property can be scheduled on an Inland Marine “floater”? |
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In addition to jewelry, other valuable items that can be placed on a floater include: silverware, goldware, stamp collections, coin collections, cameras, collectors items, guns, fine arts, and furs. Contact your agent to see if you qualify.
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