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Homeowners
Following is a list of the most frequently asked questions from our
homeowner customers. The answers have been designed to give you general
information. Each company defines their own coverage, terms, limitations and
exclusions, therefore, we recommend you thoroughly review your policy for more
detailed answers.
Q: What is covered on a Homeowner policy?
A: A Homeowner's policy is a package type of policy, which
means that it includes protection for several types of possible losses,
including damage to your structure, your personal property and any liability or
medical claims that may arise.
Q: What perils does my policy cover?
A: The standard homeowners policy covers Fire, Lightning,
Smoke, Windstorm, Hail, Theft, Vandalism, Malicious Mischief, Explosion,
Aircraft and Vehicle Damage, Riot & Civil Commotion, Falling Objects,
Accidental Discharge of Water or Steam and Freezing of Plumbing, Heating and
Air Conditioning Systems.
Q: How much coverage should I insure my home for?
A: The dwelling should be covered for the estimated
replacement cost. This is generally determined by the average cost contractors
in your area would charge to rebuild your specific home in the event of a loss.
Do not be underinsured! A company charging you a lower premium does not mean
you are adequately covered.
Q: What are "Separate" or "Other" Structures?
A: The standard homeowner policy provides coverage for
"separate" or "other" structures which are not attached to the dwelling such as
fences, sheds, pool, and detached garages. This is generally 10% percent of the
dwelling amount, but can be increased if the replacement value is greater than
this amount.
Q: How much contents coverage is adequate?
A: Coverage for your contents (personal property) is provided
at a percentage of your dwelling amount. This generally ranges between 50% and
75% of your dwelling coverage. There are special limitations on certain
personal property items such as jewelry, furs, watches, guns and silverware.
Please check these limitations on your policy and be sure the amount is
adequate in case of a loss. If not, a Personal Articles Schedule can provide
broader coverage for specified items. Ask us for a quote!
Q: What is Loss of Use / Additional Living Expenses?
A: This coverage pays for increased costs of temporary living
arrangements after a covered loss occurs. This includes hotel and food expenses
incurred beyond your normal monthly expenses.
Q: What does Personal Liability cover?
A: This coverage protects you against claims resulting from
alleged bodily injury or property damage for which you may be legally liable.
You would be covered up to the liability limit stated in your policy for each
occurrence. This excludes auto and business related claims.
Q: What does Medical Payments cover?
A: This coverage pays for medical expenses of guests or
others injured at your premises up to the coverage limit.
Q: How is the deductible applied?
A: The deductible is the amount you pay towards each claim.
The company will adjust and settle each claim for the full amount less the
deductible. You do not have to pay this in cash.
Q: How can I lower my premium?
A: There are several things which help reduce your insurance
premiums. On premises alarm systems such as fire, smoke and burglar, or Central
Station alarms sytems which connect directly to a fire or police department or
24 hour monitoring company will provide discounts. Also, increasing your
deductible will lower your premium costs as well. Q: Can I keep my policy after
I pay off my loan? A: Yes. Please notify us immediately when you pay off your
loan so we can delete the lender from your policy.
Q: What do I do if my mortgage company changes?
A: Call us immediately and we will endorse your policy to
reflect the new mortgage company. This is very important especially if your
lender pays for your insurance policy through an insurance escrow or impound
account. One of the most common reasons policies cancel is due to non-payment
because the renewal invoice was sent to the incorrect lender.
Q: Is my personal property covered while I am moving from one
home to another?
A: Yes. Your current homeowner policy extends coverage for 30
days. Personal property coverage may be subject to limitations and exclusions
so please review your policy to make sure you know what the limitations are.
Q: Can I transfer my current insurance policy to another
property?
A: No. Your policy is not transferrable. Each policy is
issued to cover a specific property address which is shown on the "Declaration"
page. When this property address changes, a new policy must be issued.
Q: Why do coverage amounts and premiums increase?
A: Your dwelling coverage amount may be adjusted annually to
reflect the current replacement cost of your property. As your policy renews,
certain new home credits may be reduced also. Higher deductibles or alarm
credits are available which can help lower your premium.
Q: Why should I choose Westwood Insurance
Agency/HomeAdvantage Insurance Services as my agent?
A: We offer insurance in more than 40 states. Due to name
restrictions in the states of Colorado and Michigan, we do business as
"HomeAdvantage Insurance Services". But regardless of the name, every customer
receives the same level of service that Westwood has been known for. We pride
ourselves in the insurance experience that our licensed representatives have
and also our affiliation with top rated insurance companies who provides you
with coverage for both home and auto.
Optional Coverages
Several optional coverages can be purchased to meet your insurance
needs.
Earthquake
This provides coverage for earthquake damages that exceed specified
earthquake deductibles.
Excess Personal Liability
This provides additional coverage beyond the liability limits stated
in your Homeowner's and Auto policies.
Personal Articles Schedule
This provides coverage above standard limitations for certain items
(i.e., jewelry, furs, fine arts, silverware, etc.)
Building Code Upgrade
This provides coverage for the extra cost required to bring your
house "up to code" in the event of a covered loss, i.e., replacement of a wood
shingle roof with a composition roof.
Flood Insurance
The Homeowner's policy excludes coverage for damages due to surface
floodwaters. A separate policy can be written to obtain coverage for floodwater
damage.
Loss Assessment Coverage
For condominium owners, this is a valuable coverage. This coverage
will pay for your share of the loss charged by a corporation or association of
property owners (i.e. HOA) up to the specified limits of the policy.
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