1. What does my policy cover? - Most policies provide named peril coverage. This means one of the named perils has to damage your home in order for your policy to react.
a. Basic named perils - Fire, Lightning, Riot, Civil Commotion, Hurricane, Hail, Windstorm, Aircraft, Explosion, Smoke
b. Extended perils - Vandalism, Falling Objects, Accidental Water, Theft, Weight of Ice, snow or sleet, Collapse, Glass
c. All risk - some policies offer better all risk coverage. These are typically owner occupied and are not limited to named perils. They cover all losses unless that particular thing is excluded in the policy language.
2. What is coverage A / Section I Dwelling? - describes the total limit of coverage for your home, rental property or mobile home.
3. What is coverage B / Section II Unscheduled Personal Property? - describes the total limit of coverage for any item that can be physically removed from your residence.
a. Examples - Clothes, Furniture, Food, Jewelry, Electronics, Medicine, appliances, etc…
For condos the limit can also include the interior improvements you have made beyond the original construction OR all construction from the sheetrock in. Refer to the Condo Master Insurance Contract for details.
a. Examples - Upgrades to cabinets, countertops, flooring, millwork…
4. What is coverage C / Liability Coverage? - the limit of liability the company will offer to defend you if you are sued for gross negligence. This is your primary defense limit in court if you are sued by someone who gets hurt on your property. This coverage does not apply to a household member.
5. What is Medical Payments to others? - the limit of liability your policy has to pay for minor medical costs for someone who is injured on your property due to your gross negligence . I refer to this as “Don’t Sue Me” coverage. Someone gets hurt for example falling down your stairs. The insurance carrier could offer this to cover cost of an ER visit and avoid a lawsuit with a “good faith” payment. This coverage does not apply to a household member.
6. What is a Deductible? - the deductible on your policy is the part of the claim you are responsible for paying.
a. Example - You have a hail claim settled at $10,000. Your deductible is 1% of your dwelling value ($ 150,000) which equals $1,500. The settlement check you would receive would be $10,000 - $1,500 = $ 8,500
7. Why do I have two deductibles on my policy? - each deductible applies to the type of covered loss you have.
a. Clause 1 - Applies to losses from Windstorm, Hurricane, and Hail
b. Clause 2 - Applies to all other types of losses
c. Clause 3 (Special Hurricane deductible) - Applies to a Hurricane or Named Storm