Understanding Homeowners Insurance

Homeowners insurance

Bradshaw & Weil, Inc. is your partner for home insurance in Paducah, KY. Many consumers do not appreciate homeowners insurance because they have unanswered questions. They want what they understand. Price. Your home is your biggest investment. Don’t let your agent skip over the fine details of your policy. Price is important but understanding what you are paying for is key. 

The homeowners insurance policy:

The insurance declarations page lists the insured residence address. It also lists the two areas of coverage the homeowners policy provide. Insurance is designed to provide protection from catastrophic loss that could arise from damage to your property. It also provides protection from catastrophic loss that arises out of your liability toward others.

Part 1- Your Property

The four areas listed below are considered property coverage.

  • A- Dwelling
  • B- Additional Structures
  • C- Personal Property
  • D- Additional Expenses

Coverage A is the replacement cost of your dwelling. Replacement Cost is calculated using the construction features of your home. Insurance is designed to put you back where you were after a catastrophic loss has occurred. So replacement cost represents the cost to rebuild your home with like size, kind and quality from the ground up.

Coverage B, C, & D are automatically calculated percentages of Coverage A. They can usually be increased if you have more value in those areas. They cannot typically be decreased.

  • Coverage B refers to structures on the premises that are separated from the dwelling by clear space. A detached garage is an example of an additional structure. Additional Structures is sometimes listed as Other Structures.
  • Coverage C refers to personal belongings. Clothing and furniture are examples of personal property. Personal Property is sometimes listed as Contents.
  • Coverage D reimburses for expenses incurred to maintain the insured’s normal standard of living while their home is uninhabitable due to a covered loss.  Temporary hotel or apartment rental expenses are examples of additional expenses. Additional Expenses is sometimes referred to as Loss of Use.

Part II- Liability

E- Bodily Injury and Property Damage Liability

F- Medical Payments to Others.

  • Coverage E- Bodily Injury and Property Damage Liability pay damages for bodily harm, sickness, disease or physical injury to or destruction of tangible property. One must be able to prove the insured was negligent and is legally obligated to indemnify the claimant before they can collect payment under Coverage E.
  • Coverage F -Medical Payments to others pays necessary medical expenses that resulted from bodily injury. The insured does not have to be found negligent. Homeowners insurance policies typically limit Medical Payments coverage in the neighborhood of five thousand dollars.

 

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