Homeowner Insurance

CUSTOMIZING YOUR COVERAGE

The modern homeowner insurance policy purchased today, if structured properly, can provide coverage's for more than just the dwelling and its contents. By comparison with other types of insurance programs, the homeowner policy offers some of the broadest coverage statements and more endorsement options than most other types of insurance. 

Spending some time with your agent reviewing these options can prove to be very valuable if an unusual loss occurs. For example, if you own or are about to purchase an older home make sure your coverage includes "Ordinance or Law" coverage. This is not included in every insurance contract and covers the cost to upgrade an older structure to current building codes following a covered loss. Many are not aware that in order to get a building permit to remodel a home after a severe loss, the building inspectors office has the right to require the undamaged portion of the structure to be brought up to code as well. This can be a costly expense and may not be covered by most homeowner policies. 

In many cases your insurance company will tell you how much they will insure your home for. This dollar amount is based on the current cost of building a home of similar square footage, which is fine if your house is standard construction. If your home has ten foot ceilings, hardwood through out, or is a beautiful old home built in the late eighteen hundreds or early nineteen hundreds - you should discuss raising the limits on the rebuilding cost portion of the insurance policy to reflect the added expense of rebuilding the same level of trim.

Another way to customize your coverage is by using "Schedules" to insure valuables, collectibles, guns, computers, fine arts, antiques, and other specialty items.

Scheduling provides four basic benefits; 
1. It establishes a value for each item listed on the schedule
before a loss occurs. 
2. It removes the deductible in event of a loss. 
3. It eliminates the policy's limitations on theft for these items and increases the perils to include mysterious disappearance and
breakage.
4. It removes the value of these items from the Personal Property coverage limit allowing it to be applied to other items in the home in case of a catastrophic loss.  

Topic help from
Perk Reichley, CIC is Vice President of Reichley Insurance Agency, Inc
offices in Xenia and Beavercreek  937-429-0655

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