Basic Home Insurance Information

hello I’m Jeff Gordon I’m going to talk to you today on our whiteboard presentation on homeowners insurance and tell you why you need a homeowner’s insurance policy and what is in yours if you already have one a homeowner’s insurance policy is for a home owner that’s not appropriate for a house that’s being rented to others or an investment property something on debt it’s if you own the house and live in it and it can include a secondary property if you have a house on the Cape or up north or something like that there are six parts to your homeowners policy and it all begins with the dwelling amount which is called coverage a if you see on your policy there’s a coverage a the dwelling should be the replacement or the rebuild cost that is god forbid the house gets hit by lightning and burns to the ground how big does the check have to be to rebuild that house and that is this number right here it should be this number the next part is other structures do you have a barn do you have a garage do you have a shed swimming pool all these are considered other structures the default for other structures is 10% of coverage a so if you have a dwelling with the value of say $400,000 your other structures automatically you’ll get $40,000 for free if you need more you can buy it if you don’t there’s no credit for taking it off it’s built in for free the next thing for personal is personal property this typically is 50% of the dwelling amount and to use George Carlin’s term this is your stuff this is everything that if you were to move you would take with you it includes rugs drapes clothes all your electronic toys and all of that stuff typically it’s 50 percent some companies offer up to 70 percent of no extra charge loss of use is if your house is made unusable unhappy tobol while it’s being fixed 20 percent typically of this amount so again in the previous example four hundred thousand twenty percent of four hundred thousand eighty thousand eight thousand dollars would be available for you to live elsewhere so that you can send your laundry out eat your meals out and stay in a hotel if you need to the next coverage e is liability coverage this is if you get sued if your dog bites a neighbor if you draw if you’re cutting down a tree with your chainsaw for the first time and it lands on your neighbor’s car this is for those types of things where you negligent and someone Sue’s you limits of 300,000 are common but more commonly today 500,000 or even a million are what most people choose and then finally medical payments it’s usually a much smaller number sometimes thousand dollars up to up to as high as five thousand dollars medical payments is for a guest who comes on your prep on your premises who may be heard on your premises they fall off the back deck they trip on the front porch on a nice storm this amount is payable without you having to be shown liable or negligent think of it as goodwill coverage if someone is hurt on your property you can say to them it’s okay take the takes the ambulance to the to the emergency room or you know we can cover your medical deductible if you have one it is goodwill coverage and it’s good to use to keep you from getting into this situation better than nutshell is how a homeowner’s policy works look to Gordan insurance at a Gordon comm for more information on homeowner’s insurance and find the best fit for you

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