Home Owners and Dwelling
The Homeowners policy is a package policy , that is it has the components of property as well as liability. These coverages are designed for the personal, non business risk. With that being said you would have some liability coverage for a business situation that is also a “leisure” activity. For example if you were playing golf on a business trip and hit someone with the golf ball your homeowner’s policy should respond.
Property that you use in business is covered but again on a limited bases, most homeowner’s will cover $2,500 for all business personal property on the premises, $500 for “Non electric” items and $1,500 for electronic items such as laptops.
Please keep in mind that all policies are different but generally they follow a general outline propagated by a company which has the copyright on the actual policy and charges the companies to use the policy form. Every company has the right then to modify the policy but must request approval by each individual state. Because of these modifications everyone should read their policies. One advantage of having a NuSurance agent is you may set up a Video Conference so your agent may explain the ins and outs of your policy.
The Homeowner’s policy Structure:
- The owner / occupant must reside* in the 1-4 family dwellings.
- Renters may have a Homeowners Policy it is an HO4 or Renters Policy and generally can be in any type building.
- The named insured must be a “Natural” person, not a corporation, partnership or business entities. Some Companies may allow Family Trusts as the named insured but not all companies have adopted this rule.
* EXCEPTION the Condo Policy HO6 allows the Condo owner to Rent the Condo.
- Coverage A is the Dwelling its self and anything that is attached.
- Coverage B is ANY detached building.
- Coverage C is your Stuff, all of your personal property.
- Coverage D is Additional Living Expenses and/or Lost Rental Income for a duplex or other multi unit structure.
Liability Coverage has two components, Medical Payments coverage, we call it “Good Guy” Coverage and Liability.
The Medical or MED PAY coverage is a voluntary payment made on your behalf should someone be hurt on your property.
Liability coverage will defend you and pays should the person who was allegedly hurt decides to sue you.
Note that there are limitations as well as exclusion in all policies – Please ask questions, we will be happy to help.