1. Dwelling: This portion of your Homeowners policy covers your inside and outside walls, roof, flooring, appliances, built-in cabinets and everything that is semi or permanently installed inside the home. It is important that this coverage be adequate to cover the actual construction cost to rebuild your home today regardless of the current housing market value.
   
   
2. Other Structures: Typical items that this portion of your Homeowners insurance covers are fences, sheds, detached garages, workshops and guest houses. This coverage is typically set at 2% -10% of your Dwelling coverage. Example: Home insured for $100,000, Other Structures coverage will usually be between $2,000-$10,000. Please note: if necessary this coverage can be increased.
   
   
3. Personal Property (Contents) : This part of the Homeowners policy protects your personal belongings including electronics, clothing, furniture, etc. basically everything that isn't installed in your home. This coverage is typically set at 50% - 75% of the Dwelling coverage but it can be increased ordecreased as well if needed.
   
   
4. Additional Living Expenses (Loss of Use): If you are temporarily unable to live in your home because of a fire or other insured disaster, this is the amount provided to you for your expenses to live elsewhere. It also pays for any expenses you normally would not have if you were living in your home. For example: extra money to eat out every meal. This coverage is typically set at 10% or 20% of your Dwelling coverage.
   
   
5. Medical Payments: If anyone outside your regular household is injured on your property, this is an automatic payment for actual medical damages, regardless of fault. This coverage is typically set between $2,000-$10,000 per incident.
   
   
6. Liability Protection: Liability covers you against lawsuits for bodily injury or property damage that you, your family members or pets cause to other people. The liability portion of your policy pays for both the cost of defending you in court and any court judgments up to your policy limit. You are also covered not just in your home, but anywhere in the world. Liability limits generally start at approximately $100,000. However, experts recommend that you purchase at least $300,000 worth of protection. Some people feel more comfortable with even more coverage. You can purchase an umbrella or excess liability policy which provides broader coverage, including claims against you for libel and slander, as well as higher liability limits. Generally, umbrella policies cost between $200 to $350 for $1 million of additional liability protection.

What type of insurance do I need for a condominium?

If you have purchased a condo with a mortgage, the bank will require insurance to protect its investment. You may, however, need more insurance to cover your personal items, liability or fees that may be charged to you regarding shared areas of the building like the lobby.

You will need two separate policies to protect your investment:

1. Your own insurance policy.
   This provides coverage for your personal possessions, structural improvements to your apartment and additional living expenses if you are the victim of fire, theft, hurriane or other disaster listed in your policy. You also get liability protection.
   
   
2. A "master policy" provided by the condo board.
   This covers the common areas you share with others in your building like the roof, basement, elevator, boiler and walkways for both liability and physical damage.

To adequately insure your condo, it is important to know which structural parts of your home are covered by the condo association and which are not. Read your association’s bylaws and/or proprietary lease to find out what is covered. If you have questions, talk to your condo association or insurance professional. Typically, the condo association policy insures the bare walls, floor and ceiling. The individual owner must insure kitchen cabinets, built-in appliances, plumbing, wiring, bathroom fixtures, etc. Don’t forget to ask about available discounts. You can reduce your rates by raising your deductibles and by installing a smoke and fire alarm system.

Additional coverage you should consider as a condo owner.

1. Unit assessment
   This reimburses you for your share of an assessment charged to all unit owners as a result of a covered loss. For instance, if there is a fire in the lobby, all the unit owners are charged the cost of repairing the loss.
   
2. Water back-up
   This insures your property for damage by the back-up of sewers or drains. Water back-up may not always be included in a policy. Check to see that it is included.
   
3. Umbrella liability
   This is an inexpensive way to get more liability protection and broader coverage than is included in a standard condo/co-op policy.
   
4. Flood
   If you live in an area prone toflooding, you will need to purchase a separate flood policy.
   
   
5. Floater or endorsement
   If you own expensive jewelry, furs or collectibles, you might consider getting additional coverage since there is generally a $1,000 to $2,000 limit for theft of jewelry on a standard policy.

 

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What is the difference between Cancellation and Non-Renewal?

There is a big difference between an insurance company canceling a policy and choosing not to renew it. Insurance companies cannot cancel a policy that has been in force for more than 60 days except when:

• You fail to pay the premium
  
• You have committed fraud or made serious misrepresentations on your application.

Nonrenewal is a different matter. Either you or your insurance company can decide not to renew the policy when it expires. Your insurance company must give you a certain number of days' notice and explain the reason for not renewing before it drops your policy. If you think the reason is unfair or want a further explanation, call the insurance company's consumer affairs division. If you don't get a satisfactory explanation, call the state insurance department.

The company may have decided to drop that particular line of insurance or to write fewer policies where you live, so the nonrenewal decision may not be because of something you did. On the other hand, if you did do something that raised the insurance company's risk considerably, like committing fraud, the premium may rise or you may not have your policy renewed. If your insurance company did not renew your policy, you will not necessarily be charged a higher premium at another insurance company.

 

 

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