Understanding
Property Insurance
Each policy is divided into two Sections:
1-Property and 2-Liability (if applicable). Liability coverage is
included on a Homeowners policy, optional on a Dwelling Fire policy.
Section 1 – Property Coverages
This portion of the policy protects you in the event of damage to your
home and/or personal property. It may also cover damage to other
structures on the premises, like tool sheds or detached garages. The
damage must be caused by a peril (such as fire) that is covered by your
policy. Your insurance agent can assist you in determining what your
policy does and does not cover.
Personal property includes the contents of your home and other personal
belongings owned by you or family members who live with you. Your policy
may not provide adequate coverage for some personal property, such as
antiques, firearms, precious metals, jewelry and furs. Ask your agent if
coverage for these items can be added by endorsement or if you will need
to obtain a separate policy to insure them.
If a covered peril damages your home and
you are unable to live there as a result, your policy may also reimburse
you for additional expenses that you incur for temporary living
arrangements.
Section 2 – Liability Coverages
This portion of the policy protects you if a claim or lawsuit is brought
against you by a third party for bodily injury or property damage. For
example, if a neighbor slips and falls in your house, Medical Payments
would cover their medical expenses, up to the limit specified in your
policy. If their expenses exceed the Medical Payments limit &/or they sue
you, Personal Liability would pay the amount you are legally obligated to
pay - subject to the policy limit - plus legal fees.
Personal Liability and Medical Payments
do not apply to bodily injury or property damage involving a motorized
vehicle, watercraft, or intentional acts.
These descriptions are general in nature and
may not apply to your specific policy. Please refer to your policy for
specific information and contact your agent with questions about your
current coverages or any additional coverage needs.
