Dear Appreciated Friend,
Many people think that their homeowners’/renters’ insurance policies cover them for all theft in their homes or apartments. Although renters and homeowner insurance protects for personal property loss, it may not cover what it will cost you to replace your possessions.
In addition, most homeowners believe they are covered for broken water, sewer or oil lines; mold and termites. Not necessarily.
Do you know what’s in your home/rental insurance policy? Or do you just assume that the document you pay premiums for covers you for all emergencies? If you own, you know that it covers your home for fire, theft and liability coverage because your mortgage lender insisted on it. However, what about flood or earthquake damage, jewelry and valuables, stolen or damaged vehicles on your property, a break in your water service or sewage line, or termites or stolen pets? Or damage from terrorist attacks?!
We at Tony’s Body Shop are committed to bringing you and your family the latest information for your protection and well-being. This issue of our newsletter gives you important insights to help you protect your home and income.
In this Issue you will learn:
How to Choose the Right Home Insurance
- What your home insurance does and doesn’t cover
- What the insurance company will pay for and what are your options
- How to protect yourself and your savings
- Where you can find more information on insurance in California
What’s in Your Home Insurance Policy?
Although you can’t buy a car without insurance, you can legally own a home without homeowners insurance. That is if you paid cash for it. Mortgage lenders will insist you have homeowners insurance to protect their investment. They may also require you to have flood or earthquake insurance if you are in high-risk areas.
What Is Covered by a Standard Homeowners Policy?
You may have more than a standard homeowner’s coverage or you may have less. The following is what is generally required in most states as a basic policy:
- Coverage for the structure of your home – in the event your home is damaged by fire, hurricane, lightning or hail. It will not pay for damage caused by flood or earthquake unless you have added these to your policy
- Coverage for your belongings – furniture, clothes, sports equipment, etc. if they are stolen or destroyed by fire, hurricane, explosion, vandalism, riot and also falling aircraft. This includes trees, plants and shrubs, garage, as well as your belongings that you take with you anywhere in the world.
- Liability protection – pays the costs of lawsuits for physical injury or property damage that you, your family and/or your pet cause to others. However, if they (your family, etc.) destroy your sofa, you are not covered.
- Additional living expenses – pays the costs of hotel bills, restaurant meals and other living expenses your house was damaged by fire or other insured disaster until it’s rebuilt. If you rent part of your house, this policy also covers you for the rent you would have collected if your home hadn’t been destroyed
What Is Not Covered in a Standard Policy?
- Damage caused to your home by flood or earthquake, unless you have specifically added this to your policy
- Stolen or damaged vehicles on your property
- Break in water service or sewage line
- Termites and mold
- Plants and shrubs are not covered for damage by wind or disease
- Damage caused by exploding water lines or underground oil tanks unless specified
- Damage caused by war or terrorism…usually. If it’s a declared war, e.g., Iraq – no coverage for terrorist acts in this country. However, damage from other types of terrorism is reviewed on an individual basis. Go figure.
What Is Renter’s Insurance?
Renter’s insurance covers your possessions against any damage. If you rent, this is a very inexpensive way of protecting your property. Your landlord is responsible for insuring the building. However, it is important for you to know if you are protected for the full replacement value of your possessions. Read on.
What Can I Be Covered For?
Discuss your policy with your insurance agent or company to ensure that you are getting the protection you need. There are different levels of coverage, and, of course, the more you are insured for, the more expensive. However, you might consider a higher deduction to reduce your payments. Most people don’t make small claims because they know that their insurance premiums will increase. You may consider raising your deductible from $500 to $1000 to reduce your premiums.
Whether you own or rent, you have three policy options:
- Actual Cash Value – pays to replace your home or possessions minus a deduction for depreciation up to your policy limit. This means if your belongings are destroyed you will only receive a fraction of their worth depending on age.
- Replacement Cost – pays the actual cost of replacing/rebuilding your home or possessions with no deduction for depreciation up to your policy limit. This is a better bet if you should need to replace or rebuild.
- Guaranteed or Extended Replacement Cost – offers the highest level of protection: that pays whatever it costs to rebuild your home as it was before the fire or other disaster – even if it exceeds your policy limit.
What’s the Best Way to Protect My Home and Assets?
This information is for your benefit whether you own or rent:
- Read your homeowners/renters insurance policy.
- Take an inventory of your assets. Start with your most recent purchases and then add others.
- Take pictures or videotape
- Make sure that your big ticket items are insured separately. For example: jewelry, furs, expensive photography/media equipment etc. You will need to get written assessments of their value and/or keep their receipts.
- If you have a business in your home, you may want to cover your investments with a rider to your policy. Your business property, e.g., computers, software, files, fabric, beads, wood, saws, etc, is not covered under your homeowners policy.
- Store the above in a safety deposit box or somewhere secure that is away from your home
- Review your policy with your insurance agent/company and make the adjustments you need to protect yourself and your savings.
Other Resources
There is software to help you with your inventory. Use Google to find the latest.
For additional information contact the California Department of Insurance at http://www.insurance.ca.gov
Some Thoughts for Today:
I’ve never been poor, only broke. Being poor is a frame of mind. Being broke is a temporary situation. – Mike Todd
I cannot discover that anyone knows enough to say definitely what is and what is not possible. – Henry Ford
If you expect nothing, you’re apt to be surprised. You’ll get it. – Malcolm Forbes
If one prepares for success and prepares for failure, he will get the situation he has prepared for. – Frances Scovel Shinn
The thing always happens that you really believe in; and the belief in a thing makes it happen. – Frank Lloyd Wright
Why should you refer your family and friends to Tony's Body Shop?
What we offer with every repair job:
- Guaranteed color match
- Accurate panel to panel alignment
- Repairing the vehicle to a safe condition
Your 100% satisfaction is our goal.
At Tony's Body Shop you can still find service, a smile, and a sincere thank you if you allow us to service your auto body needs.
Please feel free to call us if we can be of help or guide you in any way.
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