Insurance Alliance of
Central Pennsylvania
www.tiacp.com
What can be done to lower my insurance premium? 
There are things you can do to lower your insurance premium. Insurance companies offer discounts for homes that have safetyfeatures such as: deadbolt locks, fire extinguishers, smoke alarms, burglar alarms, and fire alarms. Many insurance companies have begun applying surcharges to accounts with claims, and offering discounts to accounts that remain claim free for a specified period of time. Insuring both your home and your personal autos with the same insurance company often qualifies you for a “multi-policy” discount. Significant discounts are sometimes offered if you agree to a higher deductible (such as $500 or $1,000). Am I covered for floods and other catastrophes? Damage caused by floods or earthquakes is not included in a typical homeowner’s policy. Flood insurance is available under a separate Flood policy. The coverage forms and rates are established by the National Flood Insurance Program, which is overseen by the Federal Emergency Management Association (FEMA). Earth movement coverage may be available as an optional coverage for such things as damage to a structure caused by a sinkhole. Earthquake coverage is often available as an optional coverage, depending on where the home is located. Who decides how much my home is worth? Most insurance companies will require that you insure your home to the amount it would cost to completely rebuild it with materials of like kind and quality. This is often referred to at the “replacement cost” of the dwelling. Replacement cost should not be confused with market value. The market value of your home is the amount someone would be willing to pay to buy your home. How much coverage do I have for my personal property? Your personal property is covered by your homeowner’s insurance policy. Your personal property includes the contents of your home as well as the personal belongings of the members of your household. This coverage is typically written on an “Actual Cash Value” basis, which is the replacement cost of the personal property less depreciation. You can elect to have your personal property covered on a “Replacement Cost” basis which will cover the cost to replace the personal property without a deduction for depreciation. Valuable items such as jewelry or furs, collections such as stamps or coins, unique art objects, musical instruments, and so forth should be covered under a Special Personal Property form since the standard policy limits the amount of coverage for these types of personal property. How am I covered when I go on vacation? Your homeowner’s policy covers all your personal belongings no matter where they are. Where the personal property was located at the time of the loss does not affect the coverage (as long as the loss was caused by a peril covered under the policy). I am a renter. Why would I need homeowner’s insurance? If the home you rent, or the apartment you occupy, were destroyed would you have the financial resources to replace everything you own? If someone were to sue you, would you be in a position pay the legal fees necessary to defend yourself? So called “Renters” insurance provides the same personal property, loss of use (additional living expenses) and liability protection as a homeowner’s policy. The landlord’s insurance does not cover you as a tenant. I own a condominium. How is my policy different? As a condominium unit-owner, your policy covers the additions and alterations made to your unit, your personal property, your additional living expenses and your personal liability. Usually the condominium association purchases the insurance to cover the buildings and other structures along with the liability coverage for the association. Typically, you are responsible for the “walls in” on your unit, as defined in the condominium by-laws. Damage to the interior of your unit, liability arising out of your unit, and additional living expenses you may incur living elsewhere temporarily while your unit is being repaired would all be covered under a condominium unit-owner’s policy. Sometimes your condominium association may find it necessary to assess the unit owners for losses that were not completely covered by the association’s insurance policy. Coverage for “Loss Assessment” is available under the condominium unit-owner’s form for these types of situations. Why does the insurance company want to know where the nearest fire hydrant is to my home? Many factors go into how the premium for your homeowner’s coverage is determined. One of these factors is the availability of water to fight a fire. Rural homes without access to a continuous, public water supply are more likely to sustain severe damage than homes within a few hundred feet of a public fire hydrant. Similarly, homes protected by a volunteer fire company are more likely to sustain serious damage than homes protected by a paid fire department. Other factors affecting the premium are: the age of the dwelling, the types of materials used for the exterior walls and roof, and whether the plumbing, heating, electrical wiring and roof have been updated. The number of lawsuits filed in a given area and the dollar amounts of jury awards also influence homeowner’s insurance premium levels. |
