No. Your property and the structure (the basement) are covered
by your policy as is your personal liability. However, the tenants'
possessions and liability are not covered by your policy. Therefore,
they may wish to purchase their own renters insurance. Whether you
are a lessor or a renter, you should check with your agent to make
sure you have the right coverage.
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As a member of the family, she is probably covered under
your homeowners policy. So too is your child away at college covered
for personal liability or theft or damage to his or her property
even in the dormitory or college apartment. However, you should
check with your agent to be sure of the extent of coverage.
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Insurance companies can operate in more than one state so the company
that carries your primary residence may issue a policy for your
vacation home. Personal liability is covered in the first homeowners
policy so the second policy need cover only property. This type
of policy is called a "dwelling policy."
If you rent out your second home for all or part of the year, your
homeowners policy may need to be endorsed (added to) to cover the
increased liability exposure. The renter's property is not covered
under your dwelling policy. Should damage occur while someone is
renting your property, they will need to check with their own agent
about their coverage.
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Yes, but within certain limits. Both are covered as personal property
used for business purposes. However, like all personal property,
there are monetary limits on reimbursement. Whether your home business
is your primary occupation or a hobby that nets you a few hundred
dollars a year, it is still a business and you should treat it as
such. If you've invested quite a bit in equipment (woodworking tools,
for example) and sell the occasional decoy, you should consider
whether the personal property limits are sufficient.
Also, keep in mind that the personal liability protection in your
homeowners policy does not extend to business liability.
Check with your agent concerning your business insurance needs.
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It's true - if most of us suddenly found ourselves without anything
due to some calamity, we would be hard pressed to know all that
we had lost. When was the last time, for example, that you counted
the number of shoes you own or CDs, not to even mention furniture,
dishes, drapes, or audio and video equipment? And the list goes
on and on. How much is it all worth and where would you start if
you had to replace it?
Now is the time to make a list of major household items
and possessions. The handy inventory form at the back of this guide
will make your job easier. Just remember that, where possible, it
is wise to list the serial number, date and cost of purchase, and
even include the receipt if you can.
Another easy way to inventory your home is to use a video camera
or take pictures of your home and its contents. As you take the
video, you can also talk about the items and their date and cost
of purchase.
Whichever method you choose, have a copy made and ask a friend
or family member to hold on to it. Or store your copy in a safe
deposit box. You could even check with your agent - he or she may
be able to store a copy for you. That way if the worst happens and
your home is destroyed, the inventory list will be safe at another
location.
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The insurance company has to weigh many factors in determining
a premium to charge for your policy. One factor is access to water
(hence the question about the location of the nearest fire hydrant)
as well as the dependability and nearness of your local fire company
and police. Rural homes more than five miles from a water supply
are more at risk for severe damage from fire and lightning. Therefore,
they can be more expensive to insure and rural homeowners may even
have difficulty obtaining insurance.
Other factors are, of course, the age and construction of your
house. Generally, brick and stone homes are cheaper to insure than
ones constructed of wood.
The number and dollar amount of lawsuits in your state can also
influence your premiums. Residents in states that experience a large
number of lawsuits or of verdicts in excess of $1 million may face
higher premiums to cover the cost of those suits.
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Because your premium is based partly on the level of risk the insurance
company must take, there are things you can do to lower your premium.
Installing deadbolt locks (to discourage theft), fire extinguishers,
smoke alarms, and burglar and fire alarms that alert your local
police and fire stations can often save you up to 15 percent on
your premium. Check with your agent before purchasing any of these
items to see if your insurance carrier has specific requirements
to qualify for the discount.
Many insurers also offer discounts if you insure both your home
and automobile with the same company. Another way to save may be
to increase the deductible on your homeowners policy. If your deductible
is $100, it means that you agree to pay this amount first, and your
insurance company will pay for damages that exceed this deductible.
By increasing your deductible from $100 to $250, or even $500, this
decreases the insurance company's risk, which may mean a savings
in your premium.
Also, it pays to shop around for insurance coverage just like anything
else. Of course, you may want to keep in mind that the extent of
coverage also determines the premium cost so the cheapest policy
is not necessarily the best. Your insurance agent can help you evaluate
the different policies and companies to find the one most suitable
for you.
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Insurance is a heavily regulated industry. Every state has some
sort of department, administration or agency that regulates and
monitors every insurer operating within the state's borders. In
addition to approving rates, your state's insurance department is
involved in all insurance matters on behalf of private citizens
and businesses. It also issues operating licenses to insurers and
agents, based on their ability to meet the state's requirements
for conduct and knowledge about insurance issues.
Your insurance company and agent work closely with your insurance
department to make sure you are getting the best and fairest possible
service within the state's guidelines. If you ever have difficulty
settling a claim, work with your agent to resolve the difficulty.
However, you can also contact your state's insurance department
(listed in the next section of this guide) if you wish to know more
about your options and rights as an insurance consumer.
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Contact your agent as soon as possible. If there is damage to your
home or possessions, make "emergency" repairs to protect yourself
and your property from further damage, then call your agent. For
example, if some of the windows in your home have been blown out
by wind, you may board them up to prevent additional damage. In
fact, your policy covers the cost of these emergency measures.
However, before setting about to make permanent repairs, call your
agent. The insurance company has the right to inspect the property
in its damaged condition. They may want to send a claims adjuster
or instruct you to get an estimate from an independent contractor.
If you have property stolen, notify the police immediately and
call your agent.
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Liability covers bodily injury and property damage to others due
to your negligence. The coverage applies to non-auto accidents that
occur either at your residence or off the premises. Medical expense
payments such as first aid can also be due to the injured party.
Should you be sued or suspect that you may be, contact your agent
immediately.
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The same rule of thumb applies to renters as to homeowners. If
catastrophe struck tomorrow, could you afford to replace everything
you own? Or if you were sued, would you have enough money to pay
legal fees and possibly settle the suit? If not, chances are you
would benefit from the protection that renters insurance brings.
Renters insurance offers the same general personal property coverage
and liability protection as a homeowners policy. Thus, your camera
is insured while you are on vacation, and you are covered if your
grandfather clock crashes into the apartment lobby's wall and leaves
a gaping hole. In fact, most policies are surprisingly extensive
and may include additional living expenses (also called loss-of-use
coverage) if you are forced by fire or other damage to live elsewhere.
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No, the landlord's insurance covers damage to the building and
the landlord's property - not your personal property or liability.
Plus, you may be liable for damage to the building if it is your
fault. If you go out and leave the stove on and an ensuing fire
causes extensive damage to the entire building, you may be held
liable to the landlord.
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Renters insurance is surprisingly inexpensive. That's because you
are not insuring a building. Like all property/casualty policies,
the value of your property to be insured and other risk factors
are weighed by the insurance company to determine your premium.
Your insurance agent can help you find the best combination of coverage
and cost.
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Check with your agent. Usually, it is best if all roommates are
on the same policy although it is possible for each to purchase
his or her own coverage. If you do need to "go it alone," you alone
receive the security of renters coverage.
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Condo owners insurance covers the same general areas outlined throughout
this guide for homeowners in the important areas of personal property
and liability. In addition, condo owners insurance provides coverage
for some situations specific to condominium unit owners.
Usually, the condominium association buys insurance to cover the
property (building and structures) and liability coverage for the
general association. If you own a condominium unit, you may be responsible
for covering from the "walls in" on your unit, that is, for your
personal property and the interior of your unit (whatever area is
excluded from the condo association's policy) as well as for your
personal liability.
Sometimes, condo owners are assessed by their condo association
for losses "outside the walls" that were not completely covered
by the association's policy. For example, if the clubhouse is destroyed
and the condo association did not have it insured, you could be
assessed for a "share" amount needed to replace it. If you wish,
check with your agent about adding such "loss assessment coverage"
to your condo owners policy.
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