SPECIAL SECTION:
INSURANCE
Insurance acts as a safety net for life’s unexpected turns. Although
the type of insurance you have and the amount of money you are
putting toward insurance vary with age, income and lifestyle, among
other things, it is important to be educated on insurance and to be
covered. The level of protection provided by insurance depends on the
amount you put toward your policy, and determining the right policy
for your specific situation is key.
The most common types of insurance include home, auto, and life.
If you only choose three types of insurance to have, these are the top
choices to cover what could be most devastating to you and/or your
loved ones. It is important to first understand some standard insurance
terms:
• Premium – cost of the coverage provided by an insurance plan
• Deductible – amount of money owed before insurance begins to
pay
• Rider – additional benefits/options added to an insurance policy
• Underwriting – review process of application by the insurance
company to determine final price, based on risk to the insurance
company
Homeowners Insurance
If you own a home, or are in the market to buy your
first house, homeowners insurance is an important
policy to acquire. Although homeowners insurance
is not required by law, many mortgage lenders
require it in order to borrow money for a home loan. Homeowners
insurance typically covers any damage done to your house or injuries
to individuals that happen on your property. This insurance covers
structural issues, personal belongings, liability protection, and
additional living expense incurred if temporarily removed from your
home due to fire or other significant disaster. Damage caused by
natural disasters such as hail, wind, fire, and lightning is often covered,
but most policies require separate insurance to cover flood and
earthquake damages.
It is important to assess the location of your property to determine
if additional insurance is needed, such as flood or mine subsidence.
A typical flood policy is broken down into two coverages including
building property and personal contents. Building property covers
your house, its foundation, plumbing and electrical, central air and
heating, attached bookcases, cabinets, paneling and a detached garage.
Personal contents coverage applies to clothing, furniture, electronics,
curtains, some appliances, freezers and the foods within them, and
certain valuables. Coverage varies by policy and additional options can
be added depending on where you deem necessary. Flood coverage
generally does not cover moisture or mold/mildew that was due to
lack of timely remediation, cash, precious metals, or outdoor living
space such as decks, fences, patios, landscaping, wells/septic tanks, or
pools. Limited coverage is also offered for underground rooms such as
basements.
In western Pennsylvania, mine subsidence is an additional insurance
policy homeowners can choose to purchase. If your home sits on top
of an abandoned coal or clay mine, you are at risk for subsidence. Mine
subsidence is lateral or vertical ground movement of the earth resulting
in the collapse of a mine. You can visit the Pennsylvania Department of
Environmental Protection’s website to check for risk on or around your
property. Mine subsidence insurance in Pennsylvania usually includes
coverage for damage to your home along with outlying structures
(sheds, detached garages, fences, in-ground swimming pools, etc.).
General homeowners insurance also covers personal liability for
accidents that happen on your property. For example, if someone slips
on ice in your driveway and injures him/herself [