Avoid Claim Loopholes by Understanding Three Key Insurance Coverage Types

To you, it's just your home, but to an insuranceconduct a home inventory to determine if you
company and their arcane policies, it's not just ahave enough coverage to replace these
"structure", but potentially several "structures",belongings.Many people learn after a storm or fire
each of which must be assigned the rightthat they didn't have enough coverage to replace
insurance policy coverage to make sure yourtheir belongings. After a catastrophe, would you
home is protected from disaster. And don't fogetbe able to remember all the possessions you've
your personal possessions are another matteraccumulated over the years? Making an inventory
unto themselves! The rates you pay for yourwill help you decide on how much coverage you
standard homeowners' insurance policy includesactually need. Start by making a list of your
the following essential types of coverage. Thesepossessions, describe each item and note where
are:1. Coverage for the structure of your home.2.you bought it and its make and model. Include all
Coverage for other structures.3. Coverage foryour sales receipts, purchase contracts, and
your personal belongings.1. The Structure of Yourappraisals. For your clothing, make categories and
HouseCoverage for the structure of your housenote items that are especially valuable. When it
is the part of your policy that includes repairs orcomes to major appliances and electronic
rebuilding if your home (dwelling) was damaged byequipment, record their serial numbers.If you are
fire, hurricane, hail, lightning or other disastersjust setting up a household, starting your home
listed in your policy. Your "dwelling" typicallyinventory can be simple. If you have lived in your
includes your house, attached structures andhome for years, the idea of doing a home
fixtures in your house such as built-in appliances,inventory can be daunting. Start by going room to
plumbing, wiring, heating systems, androom. Note recent purchases and do your best to
permanently installed air-conditioning systems. Thisremember what you can of older items.Your
coverage does not cover damage caused byinventory can be documented by photographing
floods, earthquakes or routine wear and tear.each item or by making a video tape. Make sure
When you buy your homeowners' insurance it isto store these documents in a very safe place,
very important that you purchase enough tonot in your home. You can download free home
rebuild your home.2. Coverage for Otherinventory software at Better yet, keep your
StructuresMost standard policies also coverrecords and digital photos inside a free
detached structures such as garages, storageKeepandShare account. Read about using
sheds, and fixtures attached to the land such asKeepandShare for home insurance
fences, driveways, sidewalks, and retaining walls.inventory.Costly items such as silverware,
These kinds of structures are usually covered forjewelry, and furs are covered but there are
about 10% of the amount of coverage you haveusually dollar limits. Your coverage even includes
on your home. If you believe you need more"accidental disappearance," meaning if you lose the
coverage on these structures, make sure youitem it is covered by your policy. However, there
talk to your insurance agent. If a detachedis no deductible. To insure expensive belongings
structure is used for a business purpose, it is notfor their full limits you need to buy a special
covered under a homeowner's insurance policy.3.personal property endorsement.Trees, plants and
Your Personal BelongingsItems such as furniture,shrubs are also covered under the Personal
clothing, and sports equipment are covered ifBelongings part of your policy as long as they
they are stolen or destroyed by insured disasters.were damaged by insurable perils. They are not
Some policies may have limited coverage forcovered if the damage occurred from wind or
small boats but not motorized vehicles unless theydisease. The coverage is usually 5% of the
are unlicensed and only used at your home. Someinsurance on your home.Your policy also includes
belongings or items may have limited coverage.off-premise coverage anywhere in the world.
These could include artwork, firearms, electronicSometimes the limit is 10% of the amount on the
data and money. Usually you have 50% to 70%policy.Your policy should include up to $500.00 of
of the amount of insurance you have on thecoverage for unauthorized use of your credit
structure of your home. It is very important tocards.