SIAA Insurance Choices

Frequently Asked Questions about Homeowners Insurance

Q:	If a tree in my yard is struck by lightning and crashes into my house am I covered?
A:	Yes. Damage to the house and removal of the tree is covered.

Q:	Will damages caused by a furnace puff back be covered by my homeowners insurance?
A:	Cleaning expenses are covered.

Q:	My pet damaged my carpet. Can I claim it on my insurance?
A:	No.

Q:	A flood destroyed my home. Am I covered?
A:	No. Flood coverage is excluded under your homeowner policy. A separate flood insurance policy would cover the loss.

Q:	An earthquake damaged my home. Am I covered?
A:	Only if you have an earthquake endorsement on your policy.

Q:	What are the differences between actual cash value/replacement costs and all risks/named perils?
A:	Replacement cost is the current cost to replace an item. Actual cash value is the replacement cost less depreciation for age. Special form coverage covers all losses except those that are excluded. Named perils cover only specifically named perils such as fire, lightening, windstorm, etc.

Q:	Is all my personal property automatically covered under my homeowner policy?
A:	Yes. However, there are limitations on certain items.

Q:	A visitor slipped and fell on ice and is suing me. Am I covered?
A:	Yes, up to the policy limit of your comprehensive personal liability.

Q:	Should I advise my agent every time I make a home improvement?
A:	You need to make sure that your home is always insured for at least 80 percent of its replacement cost or you will be subject to a co-insurance penalty in the event of a claim.

Q:	Will my homeowner's policy cover me if my wedding ring is stolen or lost?
A:	Your homeowners policy will cover the loss only if there is reasonable thought that a theft occurred up to $1,000. If you need more coverage an Inland Marine policy should be purchased with the value based upon an appraisal of the item.

Q:	Why should I purchase earthquake coverage?
A:	Earthquake coverage is not included in your homeowner policy. Since 1900 earthquakes have occurred in 39 states and caused damage in all 50. Nine out of 10 Americans live in seismically active areas.

Q:	Why should I buy renter's insurance?
A:	It is inexpensive and covers personal property in your apartment. It also provides limited off premises coverage, motel costs in the event that you had to evacuate the building overnight, and court expenses if you were found liable for an accident in the apartment that resulted in someone else's injuries.

Q:	Why should I package all my insurance?
A:	By packaging all of your insurance policies you can achieve significant savings.

Q:	When comparing homeowners policies, what should I look at other than the limit on my house?
A:	There are many features within a Homeowners Policy that will make it different than another. In addition to the limits shown on the front of your policy (dwelling, contents, liability, etc.), you need to dig into the policy language to see how your policy addresses things like: Backup of Sewer or Drains The basic Homeowners Policy does not cover this, but many offer it as an option or enhancement. Wind damage to trees If you have a tree blown down on your home, most policies will pay for the cost to remove it. However, if the tree is just downed in the yard, some policies will cover the removal - others will not. Cost to Replace your Home Virtually all Homeowners Policies provide replacement cost coverage (not depreciated) up to the home value shown on the policy. What if your cost to rebuild exceeds that limit? Many companies offer endorsements to allow some "excess coverage" to allow for situations where the cost to rebuild exceeds the home value shown. While you should try to insure at the full cost to rebuild, these endorsements take the burden off of you to make sure that you are aware of every change in building costs over time.