| When it comes to homeowners insurance,
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| | the land such as fences, driveways,
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| you should understand the different types
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| | sidewalks, and retaining walls. These
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| of policies available so that you can
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| | kinds of structures are usually covered
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| make an informed decision.
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| | for about 10% of the amount of coverage
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| Whether this is the first time you are
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| | you have on your home. If you believe you
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| shopping for a homeowners insurance
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| | need more coverage on these structures,
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| policy or if you currently have a policy,
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| | make sure you talk to your insurance
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| it is always a good idea to be well
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| | agent. If a detached structure is used
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| educated to make sure you have your home
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| | for a business purpose, it is not covered
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| properly and adequately covered. It's
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| | under a homeowners insurance policy.
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| also important to know what your
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| | 3. Your Personal Belongings
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| deductible is.
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| | Items such as furniture, clothing, and
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| Standardized HO (homeowners) insurance
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| | sports equipment are covered if they are
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| policies include:
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| | stolen or destroyed by insured disasters.
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| HO-A provides extremely limited actual
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| | Some policies may have limited coverage
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| cash value coverage for your home and
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| | for small boats but not motorized
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| contents. Only the types of damage
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| | vehicles unless they are unlicensed and
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| specifically listed in the policy are
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| | only used at your home. Some belongings
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| covered. HO-A amended policies provide
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| | or items may have limited coverage. These
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| more extensive coverage than the base
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| | could include artwork, firearms,
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| HO-A but less coverage than an HO-B.
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| | electronic data and money. Usually you
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| HO-B provides replacement cost coverage
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| | have 50% to 70% of the amount of
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| for most types of insurable perils,
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| | insurance you have on the structure of
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| except for exclusions.
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| | your home. It is very important to
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| HO-C policies provide the most extensive
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| | conduct a home inventory to determine if
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| coverage.
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| | you have enough coverage to replace these
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| When you shop for homeowners insurance,
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| | belongings.
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| it is very important that you know what
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| | Costly items such as silverware, jewelry,
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| your policy covers. Your policy is
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| | and furs are covered but there are
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| designed to protect homeowners from
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| | usually dollar limits. Your coverage even
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| insurable perils. These perils can
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| | includes "accidental disappearance,"
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| include fire, theft, hurricanes and
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| | meaning if you lose the item it is
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| several other events. Your individual
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| | covered by your policy. However, there is
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| policy is determined by named perils and
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| | no deductible. To insure expensive
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| exclusions. Policies can differ from
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| | belongings for their full limits you need
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| homeowner to homeowner. With your agent's
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| | to buy a special personal property
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| help, you can determine how much coverage
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| | endorsement.
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| you and your family need.
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| | Trees, plants and shrubs are also covered
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| To receive full payment (minus your
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| | under the Personal Belongings part of
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| deductible) for a partial loss, you must
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| | your policy as long as they were damaged
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| insure your house for at least 80% of its
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| | by insurable perils. They are not covered
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| replacement cost. If you insure for less,
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| | if the damage occurred from wind or
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| the insurance company will only pay for
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| | disease. The coverage is usually 5% of
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| part of the expense of a partial loss. If
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| | the insurance on your home.
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| your home is destroyed and you only have
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| | Your policy also includes off-premise
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| actual cash value coverage, you may not
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| | coverage anywhere in the world. Sometimes
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| be able to completely rebuild with the
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| | the limit is 10% of the amount on the
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| claim payment you receive.
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| | policy.
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| With any policy there are exclusions.
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| | Your policy includes up to $500.00 of
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| Your policy typically does not cover
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| | coverage for unauthorized use of your
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| injuries to animals or damage to motor
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| | credit cards.
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| vehicles or aircraft. You also are
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| | 4. Additional Living Expenses (Or Loss of
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| usually not covered for losses due to
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| | Use)
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| floods, mudslides, water damage from
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| | This part of your policy covers any
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| sewer backups, damage from war or nuclear
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| | additional expenses you may have above
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| hazards, neglect, earthquakes, power
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| | and beyond your normal living expenses if
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| failures, seepage, dry rot or vermin.
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| | you cannot live in your home due to
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| Homeowners insurance policies have
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| | damage caused by insurable perils. This
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| different covered perils and exclusions.
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| | means hotel costs, meals, and other
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| Check your policy carefully so you
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| | living expenses are covered while your
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| understand the kinds and extent of
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| | home is being repaired or rebuilt. The
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| coverage you have.
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| | amount available to pay for these
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| Five Key Home Insurance Coverage Types
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| | expenses is usually equal to 20% of the
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| The rates you pay for your standard
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| | insurance on your house. If you rent part
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| homeowners insurance policy includes the
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| | of your home, the loss of income will be
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| following essential types of coverage:
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| | reimbursed. Policies differ company to
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| Coverage for the structure of your home.
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| | company. Make sure you know what is
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| Coverage for other structures.
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| | covered. This part of your insurance
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| Coverage for your personal belongings.
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| | policy is to help you maintain a "normal
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| Additional living expenses (ALE) also
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| | standard of living."
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| known as loss of use.
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| | 5. Liability Protection
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| Liability protection.
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| | Liability protection provides personal
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| 1. The Structure of Your Home
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| | liability coverage against lawsuits for
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| Coverage for the structure of your house
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| | bodily injuries or property damage that
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| is the part of your policy that includes
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| | you or other members of the family who
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| repairs or rebuilding if your home
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| | live in the home cause others on your
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| (dwelling) was damaged by fire,
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| | property. It also covers any damage or
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| hurricane, hail, lightning or other
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| | injury your pet may cause. This part of
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| disasters listed in your policy. Your
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| | your policy includes no-fault medical
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| "dwelling" typically includes your house,
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| | coverage so medical expenses are paid
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| attached structures and fixtures in your
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| | with no liability claim filed against
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| house such as built-in appliances,
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| | you. The cost of defending you in court
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| plumbing, wiring, heating systems, and
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| | and court awards are covered, up to the
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| permanently installed air-conditioning
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| | limit of your policy. This coverage
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| systems. This coverage does not include
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| | covers you, your family members, or your
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| damage caused by floods, earthquakes or
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| | pets anywhere in the world.
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| routine wear and tear. When you buy your
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| | Home insurance experts highly recommend
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| homeowners insurance, it is very
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| | that you buy at least $300,000 worth of
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| important that you purchase enough to
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| | protection. You can also buy an umbrella
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| rebuild your home.
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| | or excess liability policy. This kind of
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| 2. Coverage for Other Structures
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| | policy covers you for slander or libel
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| Most standard policies also cover
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| | claims. These policies cost between $200
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| detached structures such as garages,
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| | to $300 for every $1 million of
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| storage sheds, and fixtures attached to
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| | additional coverage.
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