SAHBA Home Hints
December 7, 2008
Home Inventory Makes it Easy to Insure Your Personal Belongings
New homeowners curious to know whether they have too little or too much insurance can turn to a home inventory to asses their insurance needs.
To figure out how much insurance is needed, an insurance agent will multiply the market rate per square foot and the square footage of the house to find out how much it would cost to rebuild the house if needed. This is referred to as the replacement cost.
“Homeowners should be sure to tell their agent of any unique features their home might have so they get the right replacement cost,” Louise Orozco of Arizona Central Insurance Agency said.
Once homeowners have the replacement cost, they can decide weather they have enough coverage for their personal property.
The amount of personal property coverage is usually around 55 percent of the replacement cost but can be changed if needed.
A belongings inventory would make it easier for homeowners and ensure they were compensated for virtually everything if they ever needed to file a claim. Check with an insurance agent or company for a home inventory guide or advice on how to best organize a list.
Be sure to be thorough because homeowners won't be compensated for something that they've paid for for years to insure if it's not on the list when a claim is filed.
Also, marking items with a personal identification number will make reclaiming any stolen items easier.
A homeowner's policy also will include “personal liability” coverage. That is, the coverage for bodily injury or property damage for which the homeowner, or a relative who lives with them, may be legally responsible.
“Homeowners should consider all assets and what they could lose if a lawsuit is brought against them,” Orozco, a SAHBA member, said.
In case of a legal matter, personal liability coverage includes the cost of defending homeowners, whether or not they are liable, against a covered lawsuit.
Personal liability also includes medical payments to others. If someone is injured accidentally on the homeowner's property, or by the homeowner or a relative who lives with them, the insurance will cover certain medical expenses.
Details: Orozco at (520) 742-9200.
SAHBA represents about 750 member businesses and 40,000 jobs serving the residential construction industry in Pima and Cochise counties.
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