Continued from previous page
Here’ s a hint. Let’ s say your brother is staying in your home while he is on vacation. There is a burglary and some of your brother’ s things are also stolen. Will you have coverage for your Brother’ s things?
First, look at the DEFINITIONS section of your policy. This will tell you who is covered. Then go to the PERILS INSURED AGAINST where you will check to see if burglary and / or theft is covered. Then go to your DECLARATION PAGE to see what dollar amount of coverage you have for Personal Property. Next you want to find your Deductible amount on the DECLARATION PAGE.
So, according to the Policy Form I am reading now, your brother would be covered for his stolen personal property. You would be covered for your stolen personal property and any damage done to your home during the burglary. Let’ s say your Personal Property limit is $ 100,000 and your deductible is $ 1,000. For this loss, you would be covered up to $ 100,000 for this loss in total, less $ 1,000. This would include your brother’ s personal property. If your policy is endorsed to cover for replacement cost of personal property, you will be paid the depreciated value of each item at the time of loss. You would then be reimbursed the difference between depreciated value and replacement cost when each item is replaced.
Just remember this ……. who, what, where, how. Who is covered. What is covered. Where does coverage apply.( most Homeowners Policies will offer a limited amount of personal property away from your residence) How much is covered and how much will I be responsible for?
It really is important for you to sit down and read your policies. The days when all policies were the same are over. There is now a basic form and every company can and does make changes to the basic form with endorsements and exclusions. When all else fails and your eyes have crossed and you just don’ t understand what you are reading, just call your Insurance Agent for clarification.