Introduction to Homeowners Insurance

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2. Determine Dwelling Limit Market Value- The amount someone would pay for the property Assessed Value- The amount on which taxes are based Replacement Cost-The amount it would cost to rebuild the house from ground up in event of a total loss

3. Why is Dwelling Limit Important? Dwelling Value provides the limit the policy will pay in the event of a total loss. Subject to co-insurance. 100% 90% or 80%. If Dwelling is not insured to value at the time of a lossthen a Co-Insurance Penalty is applied: Co-Insurance Penalty Did Should X Loss – Deductible = Claim Payment

4. Example #1 RC of Dwelling $500,000 Dwelling Limit on policy $300,000 Partial Loss: $30,000 Did 300,000 Should X Loss 500,000 60% X 30,000= Claim Payment is $18,000 less deductible

6. Coverage A Dwelling We cover: The dwelling on the residence premises, including structures attached to the dwelling and Materials and supplies located on or next the residence premises used to construct, alter or repair the dwelling or other structures on the residence premises. We do not cover land.

7. Coverage BOther Structures We cover other structures on the “residence premises” set apart from the dwelling by clear space. This includes structures connected to the dwelling by only a fence, utility line, or similar connection…… 10% of Dwelling Limit. Limit can be increased for additional premium. Examples of other structures:

8. Coverage CPersonal Property “ We cover personal property owned or used by an “insured” while it is anywhere in the world. 50% of Dwelling Limit Can be increased for additional premium After a loss and at your request, we will cover personal property owned by: others while the property is on the part of the “residence premises” occupied by an insured OR a guest while the property is in any residence occupied by an “insured” This is limited to 10% of coverage C or $1,000 which ever is greater. Special Limits on Personal Property Money, Bank Notes $ 200 Securities $1,500 Watercraft inc Trailers $1,500 Trailers $1,500 Theft of Jewelry Watches Furs $1,500 Silverware Theft $2,500 Firearms Theft $2,500 Business Property off Premises $ 500 Business Property on Premises $2,500 Elect Apparatus in vehicle dual $1,500

9. Coverage D Loss of Use Provides at the time of a covered loss: Additional Living Expenses: increase in normal daily living costs until normal repair or replacement can be made 30% of Dwelling Limit- Is this sufficient? Can be increased Loss of rental income- Civil Authority

10. Additional Coverage Debris/Tree Removal $500 Trees Shrubs & Plants $500 max Credit Card/Fund Transfer $500 Fire Dept Service Charge $500 Loss Assessment $1,000 Landlords Furnishings $2,500 Ordinance & Law 10% Dwelling Grave Markers $5,000

12. Includes prejudgment interest

13. Defense costs are in addition to the limit