Alternatives Insurance of St Louis City (AISTLC) continues their monthly, insurance educational series with Missouri Home Insurance Coverages. It is important for Missouri Homeowners to understand the many home insurance coverages and the variety of options. The differences between what a homeowner has versus what they should have could be detrimental if a disaster occurs. The AISTLC Homeowner Educational Series provides easy to understand term that describes homeowner insurance coverages, coverage extras, coverage exclusions, explains how deductibles work, and more. Additional resources for Missouri Home Insurance Coverages can be found on Alternatives Insurance of St Louis City website.
The following are summaries of the Home Insurance Coverages that will be explained further in the AISTLC insurance educational series.
Homeowner policies must have the basic Missouri Home Insurance Coverages in place. The coverages are broken down into Two Sections. Section One is Property Coverages and Section Two is Liability Coverages. Property Coverages are broken down into 4 segments as noted below:
Coverage A – Dwelling coverage protects the physical structure of the home, all structures attached, such as an attached garage, building equipment, fixtures and outdoor equipment used for the service of and located on the dwelling premises.
Coverage B – Other Structures can help protect the physical structure of buildings on the property that are separate (not attached to the home), such as a shed or a stand-alone garage.
Coverage C – Personal property coverage protects personally owned items inside the home and outside the home, such as while traveling. The description of personal property includes personal contents usual to the occupancy of the premises and belonging to the insured or members of the insured’s household. Contents coverage includes coverage for furniture, clothing, electronics, TVs, etc…
Coverage D – Loss of Use Loss of Use protection applies when a damaged property is not fit to live in due to a covered loss. Coverage includes any necessary increase in living expenses that may be incurred in order for the homeowners and their families to maintain a normal standard of living while their home is being repaired.
Liability Coverages includes Coverage E and F. Personal Liability and Medical, respectively. Liability provides the insured protection up to the limits of liability for damages caused by the insured. Medical Payments to Others can help cover the cost of medical expenses for a person who’s injured on a homeowners’ property.
Insurance policies come with a deductible. Deductibles are the amount paid by a policyholder before any claim is paid by the insurance company. Some insurance carriers offer a percentage deductible option that is based on the home’s insured value, and some offer a flat dollar deductible, that is subtracted from the amount of the claim payment.
The standard home policy has exclusions for many reasons, and some insurance companies allow homeowners to add them back to the policy for a premium. This allows homeowners the option of increasing protection where it’s needed most. Not all carriers offer the same options, so it is important to talk with a licensed agent. A licensed agent can help consumers determine if specific options are necessary.
Some of the home insurance coverage options include Equipment Breakdown Coverage for loss due to mechanical or electrical breakdown of most types of equipment. Scheduled Personal Property Coverage for valuable, appraised items. Water backup Coverage from sewer, sump pump, and drain backups. Business Property Coverage helps recover the cost of business-related items stored in the home. Identity theft restoration for victims of identity fraud. Sports equipment for expensive gear. Yard and garden expanded coverage for items like trees and riding lawnmowers. Electronic data recovery can help with the cost of recovering lost personal computer data, such as photos or videos.
The type of homeowners policy could make a difference between complete protection or total loss. Homeowners should discuss the conditions and special limits with a licensed agent and purchase the right protection. Click here for additional resources from Alternatives Insurance of St Louis City.
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