What Does Coverage A Cover? 6 Homeowners Insurance Coverages Simplified.

 In Insurance Advice

What Does Coverage A Cover? 6 Homeowners Insurance Coverages Simplified.

Welcome, Finally 2021!  It is the beginning of a new year and there is no better time than now to re-evaluate your homeowners insurance and verify your coverages.. In this post I hope to explain how to read your insurance declarations page and empower you to evaluate your possible homeowners insurance needs. 

First, the coverage needed is based on the value of your home. Your insurance agents will verify the amount through a system that populates your address and then enters additional information such as square footage, siding type, roof age, etc… This system tells the agent how much coverage is needed for your home. The coverage required will outpace the price of your home because it is accounting for the future market value of supplies and other services that might be required after a catastrophic event, such as debris removal. 

Now, let’s discuss how to read your declarations page. 

In Section One, you will find your property coverage information: 

Coverage A is the total amount of coverage for your home.  This is the amount you would be paid if your home (or structure) was a total loss. 

Coverage B is for other structures on your property, such as sheds, shops, barns, or fences. 

“Coverage B” is typically 10% of the value of “Coverage A”. 

Coverage C is the total amount of coverage you have for your personal property. Personal property is items that are held in the previously mentioned structures, such as household items, clothes, furniture, electronics, tools, etc…

Coverage D is the amount of coverage you have for “Loss of Use”. This coverage is used when you can not stay in your home while it is being rebuilt or repaired. That coverage will allow you to stay in an apartment or hotel while repairs are done.

In Section Two, you will find your liability coverage information: 

Coverage E and F is your personal liability and medical coverage. This is insurance used when someone is injured on your property. My personal suggestion is to carry at least $300,000 in personal liability. This may seem dramatic but what if someone was hurt in your pool, on your trampoline, on your deck, or playing with your children on your property? This coverage will provide for the injured personal medical bills, physical therapy ord loss of wages, should you be held personally liable for their injuries. 

There are other coverages you should consider when you review your current coverages, such as:

  • Secondary Wind and hail deductible
  • Earthquake or Sinkhole Coverage
  • Water/Sewer Backup (can be very important for basement homes)
  • Scheduled Coverage for jewelry, guns, musical instruments, fine arts and other valuables. 
  • Personal Injury Coverage (for libel or slander)
  • Service Line Coverage (for underground lines such as gas, water or electrical)
  • Damaged and Matching Siding or Roofing Coverage

I talk more in-depth on these endorsements in this blog, click here for more information.

As an insurance agent, I sincerely hope these are coverages you will never need, but if you did, I would much rather you be prepared!  If you have any questions please don’t hesitate to call the office at 417-882-1800, our team of independent agents would love to help you review your coverages and make sure you are set for the next year. 

We are not permitted to offer, and no statement contained herein shall constitute, tax or legal advice. Individuals are encouraged to consult with a qualified professional before making any decisions about their personal situation. We are able to provide you with information but not guidance or advice related to federal benefits. Our firm is not affiliated with the U.S. government or any governmental agency.  Investment advisory services offered only by duly registered individuals through AE Wealth Management, LLC (AEWM). AEWM and The Resource Center are not affiliated companies.

 

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