Optional Coverages

Brief Overview of Coverage on an Auto Policy

Dwelling Coverage
This coverage provides for the repair or replacement of your home and attached structures such as a garage or deck.  Most homeowner policies provide for the replacement cost of your home when a specific amount of coverage is maintained (a percentage of the amount it would cost the insurance company to rebuild it).  Some policies will offer guaranteed replacement cost, a guarantee that the company will bear the full cost to replace your home, up to a specific amount.

Other Structures
This coverage provides for the repair or replacement of other permanent, separate, or unattached structures on your premises.  The coverage limit for other structures is typically 10 percent of the dwelling coverage.  This coverage protects against a loss to a detached garage or personal workshop.  It usually will not provide coverage for other buildings on your premises that are occupied by a tenant or buildings used for business.  If you have an unusually large detached garage or several outbuildings on your premises, you may need to purchase additional coverage.

Personal Property
This coverage provides for repair or replacement of your furnishings and personal effects.  This coverage usually specifies an amount of 50 to 70 percent of the dwelling coverage, depending on your insurance company program.  This coverage extends worldwide, but usually will provide only up to 10 percent of the coverage limit while it is away from your home.  Increased limits on personal property may be available at additional cost.  Repair or replacement under this coverage usually is made on an actual cash-value-basis, which is equal to the replacement cost, less depreciation."

Personal property coverage is usually offered on a named perils basis.  This means that the policy will specify and list the perils.  Commonly covered perils include fire, lightning, windstorm, hail, explosion, riot or civil commotion, aircraft, vehicles, smoke, vandalism and malicious mischief, theft and falling objects.  There may be specific limits for recoverable amounts under specified perils.  For example, your policy may provide up to $5,000 in personal property coverage, but you may have a limit of $200 for theft of money.

There are exclusions under this section of the policy with which you need to be familiar.  For instance, property of roommates or boarders, automobiles, larger boats and property used for business will not be covered.  You may, however, be able to purchase additional coverage for some types of business property inventory.

Additionally, you may be able to purchase replacement cost coverage for your personal property or buy increased limits on jewelry, sports equipment, cameras, stamp and coin collections, and computers. Property of unique or significant value should be protected by purchasing scheduled personal property coverage or by buying a separate floater.  A floater is a separate coverage form attached to a homeowner policy.  It will require additional premium.

Loss of Use or Additional Living Expenses
This coverage provides for the increase in you housing expenses when you are displaced because of a covered loss.  Your policy will usually include the loss of use (LOU) or additional living expense (ALE) coverage at 20 percent of the dwelling coverage limit without additional premium.  There may be restrictions on this coverage, such as maximum amount payable per month or a time limitation.

Medical Payments
This coverage provides for medical expenses of others when they are accidentally injured while on your property.  Most policies include at least $1,000 of coverage, but higher limits may be available.  This coverage generally is limited to any non-resident on your property with your permission, and payment is made without a determination of negligence.

Personal Liability
Personal liability protection covers expenses for bodily injury, and/or property damage sustained by others when you are determined to be legally liable.  Most policies include at least $100,000 of coverage, but higher limits may be available.  When deciding how much coverage to purchase, consider the value of your total assets and how much you might lose if another person successfully sued you for damages.

Additional Coverages
This type of coverage generally provides for debris removal; damage to trees, plants and shrubs, and credit card coverage.  The amount of coverage in this category may be capped, and coverage may be limited to specific perils.