- What does personal liability insurance cover?
- What insurance covers my jewelry?
- How much should I insure my home for?
- Does my homeowners include coverage for my boat and dirt bike?
- Do I need flood insurance?
Personal liability insurance protects you and your family from bodily injury and property damage caused by you and your residents. If someone should slip and fall, your child throws a baseball through a window, or you accidentally hit someone’s car with a golf ball, all of these things would be covered. It even includes medical payments for anyone who is accidentally injured on your property.
A standard homeowner’s policy will cover your jewelry up to a specified sublimit, usually between $2,000 and $5,000. If you have some pieces that are valued high or have sentimental value, it may be best to cover them on an inland marine policy. You can schedule, or list, each piece of jewelry on this type of policy along with a value determined by an appraisal or receipt.
When you purchase insurance, the company will do what is called a replacement cost estimator. They will input the characteristics of the home such as year built, square footage, flooring, etc. to determine what the amount would be to completely replace your home if it should be completely lost. Please note that the replacement cost number will most likely be different from market value.
Your homeowner’s insurance policy will exclude boats and dirt bikes; however, these can be covered under a separate policy and it is usually very affordable. A watercraft policy will cover your boat and liability. Be sure to pay close attention to the property covered on the watercraft policy as this can vary greatly from company to company. A dirt pike policy will cover your liability and damage to the dirt bike if you so choose to include that. It will have similar coverages to an auto policy and is usually less expensive than a motorcycle policy.
Purchasing flood insurance or not is a personal decision. Be aware that flood is specifically excluded from a homeowner’s policy. Even if you are not in a flood zone, it may be something to consider so that if you are devastated by a flood, you will be able to easily repair or replace your home.