Ever wonder exactly what the different coverage are for on your policy? Here is a helpful description that is easy to understand. If you have questions about your policy, just contact me and I will be happy to go over it with you.
AZ State Law 44-1208 states that mortgage companies cannot require a homeowner to obtain more insurance than the replacement cost of your home, as determined by your insurance company. Below is the exact law.
44-1208. Loans
secured by real estate; prohibited practices; insurance
Except for consumer lender loans regulated pursuant to section
6-636, for any loan that is secured by real property, a person shall not
require as a condition of the loan that the borrower obtain property insurance
coverage in an amount that exceeds the replacement cost of the improvements as
established by the property insurer.
BASIC COVERAGE
Dwelling Protection.
Coverage includes for the home you live in and other structures attached to it, such as a garage, deck or fence.
Other Structures Protection.
Coverage for other buildings on your property that is separate from your home, such as an unattached garage, shed, or gazebo. This coverage is usually 10% of the dwelling coverage.
Personal Property Protection.
Coverage includes loss of furniture, clothing and other contents if stolen or damaged, this coverage is usually 60% of the dwelling coverage. There are limits on certain personal property such as jewelry, computers, guns and cash.
Additional Living Expenses.
Coverage that reimburses you for reasonable increases in living expenses when a loss occurs that your insurance company covers which makes your home uninhabitable. This may include payments for the cost of rent, hotel, food and other expenses.
Guest Medical Payments.
Coverage payments for necessary medical expenses including surgery, x-rays and dental work if a guest is injured on your property.
Family Liability Coverage.
Coverage to protect you if you are sued for damages after someone is injured on your property. If your property contains a swimming pool, we strongly suggest a minimum $300,000 in coverage.
Deductibles.
The amount of co-insurance you have on your policy that you are responsible for any claim.
OPTIONAL COVERAGE
Scheduled Personal Property.
Coverage that protects certain personal property such as jewelry you have itemized on your policy in case of loss, theft or mysterious disappearance.
Extended coverage on Jewelry, Watches and Furs.
This coverage would increase the amount of basic coverage you have on your policy on these items.
Building Code.
Covers increased re-building costs due to the enforcement of any building codes, ordinances or laws regulating construction, maintenance or demolition of your home.
Water Backup.
Helps cover damage in your home from backed up drains or broken sump pumps.
Identity Theft Restoration.
If your identity gets stoles, this coverage can help you with legal work, phone calls and lost wages.
Hope this information is helpful.
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Building Code.
Covers increased re-building costs due to the enforcement of any building codes, ordinances or laws regulating construction, maintenance or demolition of your home.
Water Backup.
Helps cover damage in your home from backed up drains or broken sump pumps.
Identity Theft Restoration.
If your identity gets stoles, this coverage can help you with legal work, phone calls and lost wages.
Hope this information is helpful.
Click here to comment
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