Understanding Homeowner’s Policies

Charles Goodman Group: Friendly Chappaqua Insurance Broker

Homeowners cannot afford to be ignorant about what their policy covers and how much coverage the policy provides. Failure to understand these basic principles can result in a homeowner thinking that they have sufficient coverage only to be surprised to find that they are financially liable for thousands of dollars in damage. A quick discussion with a Chappaqua insurance agent can clear up any questions a homeowner has about their coverage.

State regulations and the policies of different insurance companies will dictate what the definition of property is and the extent of coverage a policy provides. The four basic categories of home insurance are dwelling, other structures, personal property and loss of use.

The dwelling is the residence where the policyholder lives. This structure is always covered under the insurance policy. Other structures would include garages, sheds, barns and additional buildings that are either connected to the house or separate from the house but enclosed on the same property as the primary dwelling by a fence or some other form of connection.

Personal property is defined as the majority of the articles a person has in their home. Some examples of personal property are furniture, electronic devices and kitchen appliances. Not every single personal possession is covered. Some items will only have limited coverage, and others may have no coverage for loss. Homeowners should check with their insurance agent to make sure that high price items such as jewelry, expensive electronics and firearms are covered under their policy.

The insurance agent experts at the Charles Goodman Group of Chappaqua can assist you with any questions regarding automobile insurance or property insurance.

Loss of use coverage kicks in when a home is uninhabitable. This could be as a result of fire, vandalism or an act of nature. Under this type of coverage, a homeowner is reimbursed for the additional living expenses they incur while their dwelling is being repaired. Loss of use is designed to help a homeowner maintain a normal standard of living while they are going through the relocation and rebuilding process.

A homeowner should pay special attention to how they will be reimbursed for the damages they have sustained. Some policies will reimburse the homeowner for the actual cash value of the items that they have lost. This means they will be reimbursed for the value of the items that they purchased minus any depreciation the item may have sustained. Other policies will provide sufficient money to replace the items that were lost. This means that if a homeowner loses a television that is worth $500, they will be provided enough money to purchase that same television based on the prices in today’s market.

Homeowners insurance can be complicated. Therefore, it is in a homeowner’s best interest to understand what their policy covers, their responsibilities as a homeowner and how they will be compensated following a loss.