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 Posted: Fri Dec 11, 2009 3:19 am Post subject: Mandatory coverage for non-existent 'Other structures'? |
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Hi,
My homeowner's policy covers 'other structures' but I do not have any. I called to ask about that and they said that it was mandatory coverage regardless of what you own. So, I asked how I would ever be able to collect the amount I am insured for and the agent said she did not know.
I live in North Carolina. Should I be able to drop the coverage on my invisible property? If not, how does it benefit me?
Thanks! |
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spatchel
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Joined: 11 Dec 2009
Posts: 3
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| Posted: Fri Dec 11, 2009 5:22 am Post subject: |
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Do you have an unattached fence, storage building of any kind, driveways, sidewalks, patios, retaining walls, etc?
The coverage is built into the policy and cannot be removed. I'm not an agent but I think it's an automatic limit based on the coverage of the home (10%). I could be wrong about that.
There is much coverage under the HO policy that may or may not apply to your situation. But it's a standardized policy.
Were you speaking to your actual agent or someone who works in the agents office? Your agent should be able to give these examples. If not, you might want to obtain a different agent. |
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tcope
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Joined: 22 Nov 2006
Posts: 5199
Location: Salt Lake City, UT
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| Posted: Fri Dec 11, 2009 6:22 pm Post subject: |
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Homeowner insurance policies are "package" policies. They contain a package of different coverages that cannot be deleted or omitted from the package, and your premium (obviously) includes costs for coverage which may or may not benefit you.
The standard HO3 (Special) form, the most common HO policy form, gives the insured a package of coverages. The actual amounts of coverage afforded the different areas of the policy on an unendorsed contract are typically as follows, and we'll assume a replacement cost on the home of $300,000 for example purposes:
Coverage A: Dwelling: $300,000
Coverage B: Appurtenant Structures: 30,000 (10% of "A")
Coverage C: Unscheduled Personal Property: 150,000 (50% of "A")
Coverage D: Additional Living Expense 60,000 (20% of "A")
It also includes coverages E and F which are called "Section II" coverage, and this is for personal liability and medical payments.
So, as you can see, you are purchasing a package contract. Are there ways to purchase these coverage individually? Yup! But I guarantee you thing- if you wanted to "pick and choose" the coverage on your home, there are few carriers that are willing to do so, and the cost for the combined premiums would far exceed the HO package costs you currently have.
Finally, if your agent cannot answer questions as simple as you posed, I absolutely agree with tcope- you need to find yourself an agent that actually has a bit of knowledge. Especially when it comes to such a simple, common policy.
InsTeacher  |
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InsTeacher
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| Posted: Sat Dec 12, 2009 12:51 am Post subject: |
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| Thank you both! I feel better and the person I spoke with on the phone was not my agent, it was a person who works there. She said he was out of town. She's worked there awhile, though. |
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spatchel
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Joined: 11 Dec 2009
Posts: 3
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