The names of the pieces may vary depending on the insurance company, but are generally referred to as housing coverages, other structures, personal property, loss of use, personal liability, and medical payments. They are generally presented as sections of policies and are often referred to as Coverages A to F. Most companies offer replacement cost coverage guaranteed by a premium. Ask your agent if it's available and to explain the benefits of having this broader coverage.
The most important coverage usually offered is full coverage of the cost of replacing your roof, with no deduction for depreciation. You can also purchase additional liability coverage and medical payment coverage for a nominal premium. Multi-family homeowners generally purchase an HO-3 with an endorsement to cover the risks associated with tenants living in their homes. Other types of homeowner policies include HO2, which offers more limited coverage, HO-1, a basic policy that isn't widely available, and HO-8, designed for older homes.
There is also a version of the HO-2 designed for mobile homes. The HO4 policy was created specifically for those who rent the house in which they live. Covers the policyholder's belongings against the 16 hazards. It also provides personal liability coverage for damages that the policyholder or their dependents may cause to third parties.
The HO-6 policy was designed for owners of condominiums and cooperative units. It provides coverage for the belongings and structural parts of the condominium or cooperative owned by the policyholder. It protects against all 16 hazards and offers personal liability coverage. Both cover additional living expenses and levels of coverage.
Starting with Hurricane Andrew in 1992 and, more recently, with Storm Sandy, homeowners insurers in New York have seen their exposure to storm damage increase steadily, as coasts have become more populated and property values have increased. To limit their exposure to catastrophic losses caused by natural disasters, insurers sell homeowner insurance policies with deductibles for wind damage as a way to make homeowners assume part of the risk of catastrophic storms, without raising overall premiums to levels unaffordable. Regulation 159 describes the specific information that insurers must disclose to insurance consumers. The information to be disclosed includes all deductibles attached to consumer policies.
A hurricane deductible is usually a mandatory company deductible that applies when a storm is declared a hurricane. It usually represents between 1% and 5% of the value of the home or the amount of home insurance. Consumers who live in areas close to the coast or to the coast may, depending on geographical location and the degree of risk, be subject to hurricane deductibles. Many insurers require them for properties located in the five boroughs of New York City, Nassau and Suffolk Counties, and the coastal areas of Westchester County.
A summary of all windstorm deductibles approved by the Department is available. Coverage E (personal liability, bodily injury and property damage) covers you and your family members against lawsuits involving injury or property damage. It also covers you if you cause damage to someone else's property. Like other types of home insurance, HO-6 doesn't usually cover floods and additional coverage will need to be purchased if flood insurance is desired.
While the HO-5 is similar to the HO-3 in terms of coverage, there are some important differences between the two types of home insurance. Additional living expenses: pays the additional costs of living away from home if a home is habitable due to damage caused by a fire, storm, or other insured disaster. All homeowner policies generally insure you for your personal liability when another person suffers bodily injury or property damage as a result of your negligence or the negligence of someone who is insured under your homeowners policy. Condo insurance usually uses a specific risk policy, but some insurance companies allow coverage to be extended to an open-risk policy, which also involves paying a higher premium.
Home structure coverage: This part of the policy pays for the repair or reconstruction of a home if it is damaged or destroyed by a fire, hurricane, hail, lightning, or other disaster mentioned in the policy. Most companies cover 50 to 70 percent of the insurance amount on the structure of a home. So, if you had a large, expensive window that broke and filed homeowners insurance claims, the replacement value would mean what the insurance company would pay to replace it with another large window of the same design or of similar quality and durability. The type of condominium home insurance is often referred to as “full coverage” because it covers the interior of a structure, while the condominium association's master policy covers the exterior structure and common areas.
The Insurance Act requires that any policy that provides liability for personal injury and that is issued for a family home of one to four families, occupied by its owner, also provide workers' compensation insurance. In some situations, the insurance company may pay you the actual value directly in cash, and then, once you've replaced the item and can provide a receipt showing the cost of the replacement, the insurance company will reimburse you for the rest of the cost. Flood coverage is provided by the federal government's National Flood Insurance Program, although it is purchased through an insurance agent. To insure these items at their full value, individuals can purchase a special personal property, an endorsement, or a float and insure the item at its appraised value.
A self-storage facility that charges you a rental fee for the items you store may act as an agent for a licensed insurer and offer to sell you insurance. . .
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