Policy limits and other related coverages

Your home owners policy premiums are determined by the primary coverage such as the dwelling (structure) and contents. There are many other coverage items in your policy that are tied into those values that may be just as important or even more important. Some of those coverage items may be increased independently others cannot. Here are some key ones you need to look at.

Loss of use: also known as additional living expenses (ALE) or loss of rental income is a coverage provided for the inability to use all or part of your home or property. It allows for hotel stays or temporary rental or even meals while the kitchen is repaired and is typically equal to 10% of the dwelling coverage amount. This coverage usually cannot be increased on its own and can become a concern when policy limits are low and ALE coverage becomes minimal.

Mold: Most policies provide coverage to mold damage if its related to a loss that is covered. this coverage is typically limited to 10,000  but extended coverage may be available for 25,000 and 50,000 limits. It is highly recommended to increase this limit if you have extended stays away from the home especially in tenant or seasonal stay situations.

Law & ordinance: This provides coverage for changes in laws such as building code that may affect the way repairs are done. This coverage is extremely important  in Florida with strict building codes and effects single family homes more then condo units that structure is covered by a master common policy. This coverage is limited to 10% or 25% of your dwelling limit and it is highly recommended that any single family home located in hurricane prone area carry the higher limit.

There are many other smaller limits in your policy that you need to carefully review and consult your agent about but the above are the main ones you need to consider when comparing policies and buying coverage.

Comments are currently closed.