Getting The Right Coverage
So you bought a home, signed your life away, provided your mortgage company the insurance policy number – and now you’re all set. Don’t think so fast! Have you reviewed your homeowners insurance policy with your agent? Do you know if you have adequate coverage? Do you know if EVERYTHING is covered? MJM Insurance® of St Louis City will review your policy to ensure you have the proper Home Insurance St Louis Missouri can offer.
What if something happens to your home? A fire? A flood? Vandalism? Will your insurance policy actually pay for the damage? Will it pay for ALL of it?
What if someone visiting you slips and falls and suffers a serious injury? And the injured party sues you? An accident like that could be devastating to you and your financial assets.
For most people, insurance is a mystery. They know they need to have insurance for their homes (mortgage lenders require it), but they don’t understand the protection provided by the policy. And, more importantly, they don’t understand what their policy does NOT cover and why.
Home Insurance St Louis Missouri | Coverages In Your Home Policy
Your home policy is designed to protect you by covering the dwelling, other structures, your personal property, loss of use, liability and medical payments. The details for each of these coverages are outlined in your policy’s “Declarations” page. MJM Insurance® of St Louis City can review your Declarations Page and explain, in detail, what each coverage means for you and how you are protecting one of our most valuable assets.
The word Dwelling in your home policy essentially refers to your home itself. It includes attached structures, as well … like an attached garage. The Dwelling Limit (or Amount of Insurance) stated on your Declarations page indicates the most the insurance company will pay to replace your home if it’s destroyed by a covered claim. Is it enough?
Contact our office and one of our agents can run a replacement cost estimate that calculates the cost to rebuild your particular home. Be sure to adjust the amount of insurance for your dwelling appropriately. If you don’t you may not have enough insurance to replace your home if disaster strikes.
2. Other Structures
The most common Other Structures are sheds, stand-alone garages (known as “detached” garages in insurance terms), barns, pool houses, etc. These structures are not directly attached to your home, the “dwelling”.
Other Structures have their own protection limit – the most your company will pay to rebuild them. This limit will be significantly less than the dwelling limit … usually 10% – 20% of the dwelling
3. Personal Property
Your personal property includes furniture, clothing, jewelry, electronics, appliances, artwork, etc. Your personal property limit is usually 70% – 75% of your dwelling limit. However, you can adjust this upward if you need more protection, Discuss your options with us. We’re here to help!
Regardless of the protection limit for your personal property, there’s a very important question you must get answered. How is your property protected … on an “actual cash value” basis or a “replacement cost” basis?
4. Loss of Use
If your home is badly damaged you won’t be able to live in it while it’s being fixed or replaced. That means you may have to pay rent somewhere while you’re also paying your mortgage. The Loss of Use coverage on your home policy pays those additional expenses for you.
Your Declarations page may state a dollar limit for this coverage, or it may state a time limit. If there is a dollar limit, this is the most the insurance company will pay for these expenses. If there’s a time limit, your insurance will pay all covered expenses regardless of the amount but only for the specified period.
Your liability coverage pays if someone sues you for their injuries due to a covered claim. When we think of such accidents we most commonly think of injuries that occur on your property – someone slips and falls, a dog bite, etc. However, the liability protection under your home policy extends beyond your property to your everyday life. For example, your home policy could also protect you if you knock someone over with a shopping cart at the grocery store
Liability insurance is all about protecting your assets from someone who sues you. So, you should have at least as much liability insurance as your financial worth.
This pays medical bills for a guest who is injured on your property or in another covered claim. This protection is inexpensive, and could save you major hassles by preventing a lawsuit.