Homeowners Insurance

[DuckRyder]

Those look like sub-limits except for the equipment breakdown.

Other structures/dwelling extensions is typically 10% of the Coverage A limit (264,000?). Read the policy it may be fences and the like as well. Like i said its normally a limit and 10% is standard - it doesn't cost you anything unless its increased.

Additional living expenses - again a limit - Got any idea how much it cost to rent a furnished dwelling for say a year if your house burns down, that's probably not enough.

Personal liability - this fairly self explanatory, does she have a PLUP?

Water leakage - again this looks like either a sub-limit or an additional coverage for an otherwise excluded peril.

Fungi - again this looks like either a sub-limit or an additional coverage for an otherwise excluded peril.

Equipment breakdown - this covers things like A/C failures etc. It is an optional coverage in all cases i'm aware of, depending on cost and terms you may want to look at that.

If she doesn't have ID (Increased dwelling - AKA inflation) and OL (Ordinance and Law) she should.

You need to sit down with the agent and have a talk and not listen to oil guys though, because clearly there are some that have no idea.

 

[alarmguy]

Be glad you don't live along the NC coast. The NC Insurance Commission currently is considering an insurance industry request for a 42% rate increase on homeowners insurance. Twenty one years there with zero claims by me. Not good.

Well, if there is any truth in that number its most likely the "average" I say this because in our county of Coastal NC they are requesting a 70% increase, if we were right on the beach line, they want a 99% increase. I think 46% is a general average number.
The only reason the NC Ins Commission is "considering" is as you posted is the Ins industry requested the increase. It's not going to happen, just as it didnt happen last year when they were awarded 8.9%. At most I expect it to be around 1/5th of what they are asking, maybe 12%? It is interesting.

Florida is faring much worse in the Coastal area of Yulee Fl that we almost purchased in. But dont get me wrong, anyplace along any coast or any forest with a fire danger etc ... deals with eh same stuff. It is outlandish though but part of living good.

 

[alarmguy]

The coverages in the OP post look normal to me except it seems like for sure "Equipment Break Down" is optional and I suspect the other 2 as well. Some people get that stuff, sometimes the cost is minimal ... but I am not one to have those 3 on a policy, I suspect equipment break down isnt cheap and all three a profit driver for ins company.

As far as the garage and other structures. Seems normal to me. $26,000 to demolish the remains of a garage, cart it away after a fire and rebuild it seems almost on the low side and certainly not too much coverage.

Personally liability is just right @ $500,000

 

[nickaluch]

Usually those additional coverages don’t add much in premium to the overall price.

If your house burns down, you are going to have to rent something while it’s rebuilt which could easily go to 24 months if there’s an investigation into the fire, demo, cleanup, permitting, delays, etc. Maybe you can rent something comparable for $1,000 a month, but that’s unlikely. You may have to pay for a few hotel rooms if there’s nothing available. You may have to pay a premium if going month to month instead of signing a lease. I wouldn’t mess with that particular one.

Insurance always feels like a scam until you need it.

My friends house burnt down had enough coverage for a rebuild but his property taxes almost doubled its considered new construction . He ended up selling suddenly he was house rich cash poor

 

[alarmguy]

My friends house burnt down had enough coverage for a rebuild but his property taxes almost doubled its considered new construction . He ended up selling suddenly he was house rich cash poor

Yeah, amazing how that works.... and as you know on Long Island, the sticker shock some people get when they do a major remodel and expansion on their home, their previous tax bill may have been $11,000 and find themselves the following year after its completed on a five year phase in to $18,000

 

[ARCOgraphite]

Decks are considered other structures on my policy. Actually the only claim I have made in 34 years was when a 5" thick ice flow slid off my second story addition (near flat 4 pitch rubber roof) onto the lower deck and ripped it off the house taking the first floor rim and floor joists down with it.
A couple years ago I added a $1M personal liability policy and that reduced cost of homeowners and auto insurance to the point it was almost "free".

 

[BISCUT]

Lightning strike.

Not sure of the contex but if you mean lightning from a thunderstorm...

I love the mountains and I'm a bit of a weather geek. The base of the valley below my little mountain is about 900ft lower than where my house sits. Adiabatic cooling rate is real! I also have an area southeast of my home where two cells collide. I see high winds often. Reaks havoc on my trim and shingles. I learned that expensive lesson after a few years living here.

We get some nasty thunderstorms summer/early fall and a few have been scary. I have a 40ft front porch and enjoy watching the wind and weather. A few times I felt the hair on the back of my neck standing u and went inside. I've had my well pump hit 2x in my 20th year here. I built it in 2004. Insurance covers the lightning strike; not part of the property but the infrastructure. SOme of that depends upon your specific insurance company.

Hope that covers it. Get it, "COVERS" it!?

 

[BISCUT]

I always wondered about what seemed excessive contents coverage considering they limit the real valuables like Jewelry, guns, cash, cameras and some others to $1000/ea. I really dont think my old clothes and funiture are worth 100k but my agent says they just include a percentage of the structure .

Many insurance co's want a rider for guns and jewelry. Mine does.

 

[BISCUT]

Yeah, amazing how that works.... and as you know on Long Island, the sticker shock some people get when they do a major remodel and expansion on their home, their previous tax bill may have been $11,000 and find themselves the following year after its completed on a five year phase in to $18,000

If that happens it's well worth it to file a claim against the town. At least here in NY. When I built my home in 2004 my best pal and kids Godfather was going to file against the assessors office for me as new construction was taxed at a much higher rate than an older home with a relatively equal market value. He called me back and told me the town had too many of these suits and losses so they instituted a yearly reevaluation and your taxes are based on market value assessment. A decent number of NY municipalities have gone to this. It's harsh politically as those who have benefited over the years in an older home lose it when they are brought up to the level of newer homes. can't blame em but it is fair. I'd be piXXed as well.

 

[DuckRyder]

I always wondered about what seemed excessive contents coverage considering they limit the real valuables like Jewelry, guns, cash, cameras and some others to $1000/ea. I really dont think my old clothes and funiture are worth 100k but my agent says they just include a percentage of the structure .

Most people think like that until they have to replace stuff. Just start thinking about everything in your house…pots and pans, utensils toiletries, underwear socks jackets nic nacs picture frames headphones razors mailboxes grills patio furniture weed eaters lawnmowers tools rakes shovels and other implements of destruction… most people run out of limits in the case of something like a fire…

 

[Hall]

My insurance company has my house valued, at probably twice what it is worth on the open market.

Look at your policy again. I'll put money on it that that coverage is for "replacement cost". Your insurance isn't in the real estate valuation business, they're providing coverage to "make you whole".

 

[zzyzzx]

Not sure of the contex but if you mean lightning from a thunderstorm...

You were stating that you thought that your home was a low risk for natural disaster, so I thought of something, which was a lightning strike, since you are on a hill.

 

[BISCUT]

You were stating that you thought that your home was a low risk for natural disaster, so I thought of something, which was a lightning strike, since you are on a hill.

Understood. I don't consider thunder and lightning a "natural disaster." Could be if it starts a fire. Luckily that hasn't happened. Tall trees have snapped during a thunderstorm due to high winds but nothing that's hit a home yet.

 

[Warstud]

Those look like sub-limits except for the equipment breakdown.

Other structures/dwelling extensions is typically 10% of the Coverage A limit (264,000?). Read the policy it may be fences and the like as well. Like i said its normally a limit and 10% is standard - it doesn't cost you anything unless its increased.

Your right ... other structures are more than just her shed and it is 10% of dwelling coverage . She also has a wood fence along the back and a wood / fiberglass porch .

 

[NormanBuntz]

Be glad you don't live along the NC coast. The NC Insurance Commission currently is considering an insurance industry request for a 42% rate increase on homeowners insurance. Twenty one years there with zero claims by me. Not good.

The above request is for starting in August 2024. Meanwhile my NC homeowners just renewed for 2024 with a 24% increase. It's like an elephant's butt. It's high and it stinks.

 

[Leo99]

Within reason, I'd rather be over-insured than under-insured. Your risk tolerance might differ.

 

[The Critic]

Many insurance co's want a rider for guns and jewelry. Mine does.

Tools are often sublimited as well.

 

[BISCUT]

Tools are often sublimited as well.

Thanks, I never knew that one.

 

[alarmguy]

I guess I should be relieved? My new H/O policy "only" went up about 15% this year.

 

[oldgrayman]

Most people think like that until they have to replace stuff. Just start thinking about everything in your house…pots and pans, utensils toiletries, underwear socks jackets nic nacs picture frames headphones razors mailboxes grills patio furniture weed eaters lawnmowers tools rakes shovels and other implements of destruction… most people run out of limits in the case of something like a fire…

Or a flood . 2016 , four feet of water in my home . Yeah , when you lose almost everything , it adds up big time .