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 eart