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Please Analyze My Homeowner’s Policy

Posted By Jim On 10/11/2006 @ 7:52 am In Insurance,The Home | 15 Comments

About a year ago I signed up for a homeowner’s insurance policy with Travelers because Geico, my auto insurance company, didn’t offer homeowner’s insurance. If you call Geico, they’ll refer you to Travelers because they have some kind of partnership. Well, a year ago I did just that: I called Geico, was referred to Travelers, received a quote, and signed the policy. The price of the policy, $56.75 per month, was in line with what my friends, who owned homes in the area, were paying so I didn’t comparison shop. Now, a year later, without the business of actually closing on the home, I’ve decided I need to revisit my policy to ensure that its complete and correct for my needs.

My home’s appraisal value at the time of the purchase was $299,999.00 and the policy is for replacement cost. Replacement cost differs from actual cash value in that in the event of something bad, I am paid out the cost it would be to replace something. Actual cash value would pay out the cost of the item minus depreciation, it’s the worse of the two but comes with a lower premium.

Here are the details of my policy:

Section I – Property Coverages Limits of Liability Premium
A – DWELLING $226,000 $587.00
B – OTHER STRUCTURES $22,600 INCL
C – PERSONAL PROPERTY $158,200 INCL
D – LOSS OF USE $67,800 INCL
Section II – Liability Coverages Limits of Liability Premium
E – PERSONAL LIABILITY (BODILY INJURY AND PROPERTY DAMAGE) EACH OCCURRENCE $300,000 $16.00
F – MEDICAL PAYMENTS TO OTHERS – EACH PERSON $2,000 INCL
Policy Forms and Endorsements Limits of Liability Premium
HO-3 Homeowners 3 Special Form
HA-300 MD Special Provisions
HO-208 Water Back-Up and sump discharge or overflow $25.00
HO-827 Limited Fungi, Other Microbes or Rot Remediation $5,000
528064 Value Added Package $70.00
52873 Additional Replacement Cost Protection Increased Amount – Maximum Additional Amount of Insurance 50% $14.00
Total Premium $712.00
Security Credit -$31.00

Policy Deductible: $1000.00 All perils insurance against

In case of loss under section I, only that part of the loss over the stated deductible is covered.

Anyone have any thoughts?

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