SAHBA Home Hints
November 30, 2008
Protect Your New Home and Belongings with Insurance
About one out of every three homeowners has proper insurance coverage. Homeowner's insurance provides compensation for damage, loss, or injury of property; personal belongings; or persons due to fire, theft, or accidents.
“New homeowners need enough insurance to rebuild their home at current construction costs and no less, not including land,” Louise Orozco of Arizona Central Insurance Agency said.
The structural part of the package generally covers damage, such as fire and smoke, lightning, wind and hail storms, vehicles, explosion, and aircraft or other falling objects. The package also should include coverage for theft, vandalism, riot or civil commotion, freezing or sudden water escape from the plumbing system or appliances, glass breakage, and sudden failure of heating or cooling systems.
A comprehensive homeowner's policy should cover the home and any structure attached to it, such as a porch or garage, and any unattached buildings on the property that are not used for business or rented to others.
Damage caused by flooding and earthquakes are not covered by a regular homeowner's policy. An insurance agent can provide information about coverage of these natural disasters if needed.
The personal property portion of the insurance package protects things in the home, like clothes and furniture. The amount of insurance on personal property is equal to a percentage of the amount of insurance on the home (usually 55%). However, it is important to know that special limits may apply to certain types of personal property.
Check to see that the policy is written for replacement cost.
“Replacement cost coverage on personal property means that the insurance will pay to repair or replace personal property that is covered,” said Orozco, a SAHBA member. “Replacement cost will increase the premium but is worth the extra cost.”
Also, consider inflation coverage. It automatically increases the amount of insurance coverage on the home and personal property as inflation changes the cost of replacing property. The changes are based on the movement of an inflation index and are reflected in the premium on each renewal.
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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