Homeowners Insurance Made Simple pt. 2
In part 1 of our “Homeowners Insurance Made Simple” series, we went through the general terms associated with any policy, and provided general definitions of the line items contained therein. In part 2, we will examine the different types of items within your home that are covered under your policy, as well as the conditions under which they are covered:
What things are protected by my policy?
Property: This section of your policy can be divided into two basic types of protection
Dwelling: includes your home and structures such as a garage or deck that are attached to your home
Other Structures: include buildings such as a garage or storage shed that are separate from the house
Personal Property (see below): personal belongings, furniture and other contents
Family Liability Protection: protects you if someone sues you for damages after being injured on your property
Personal Property Protection covers the loss of your belongings, and can help you replace them if they’re stolen or damaged. If these belongings are stolen or damaged outside of your home, your homeowners insurance can help you replace them as well.
However, some categories of personal property coverage have a maximum dollar limit that Allstate will pay the policyholder in the event of damage or loss. There may also be a limit per single item within these categories as well.
Because the value of most of your belongings decreases over time, you are able to choose from two different options with regards to personal property coverage:
Actual Cash Value: your belongings are covered for their replacement cost minus depreciation. Depreciation is the decrease in the item’s value due to its age, condition or other factors
Reimbursement Provision: your belongings are covered for the amount it would take to replace them at the time of the claim (premiums typically are higher for this type of coverage)
- First, you are given a check for the Actual Cash Value of the item
- When you replace the item, Allstate will issue a separate check for the remaining amount needed to make the purchase