Types of coverage for homeowners in Oregon
Does my homeowner's insurance cover this? The question that many insurance agents receive every day from their customers...Over the next series of blogs we will discuss what coverage is afforded with a homeowners policy. There are four categories of coverage for homeowner's insurance in Oregon- Coverage A-Dwelling, Coverage B-Other Structures, Coverage C- Personal Property, and Coverage D-Loss of Use
What does homeowners insurance actually cover? Coverage A-Dwelling
Dwelling coverage provides coverage for the dwelling. It also provides coverage for supplies and materials that are located on or next to the premises. These supplies and materials must be used in construction, repair, or to alter the dwelling or another structure on the insured's premises.
Coverage B- Other Structures- what does this cover?
Coverage B covers other structures on the insured's premises that are apart from the main dwelling, defined by a clear space between. If the structure is attached to main dwelling via utility line or fence, etc. it's not considered attached and will be covered under Coverage B.
The exclusions for Coverage B are if the structure is used as a business, or the structure is rented or held for rent to someone who doesn't actually reside in the dwelling, unless it's being used as a private garage only. If it's being used as a private garage only, then the renter does not have to reside on the premises for this "other structure" to be covered.
There is a coverage limit of 10% of the Coverage A amount. In other words, if coverage A amount of coverage is $300K, then coverage B amount of coverage would be $30k.
Coverage C- Personal Property - Homeowner's Policy Oregon
Coverage C- Personal Property can cover property while at insured location or anywhere in the world. It can also provide coverage for guest's property, as long as the insured requests coverage for items prior to loss.
The limit of coverage for Personal Property is 50% of Coverage A amount. So, if Dwelling (Coverage A) is $500K, then the limit of coverage for Coverage C is $250K. This is for personal property on the premises.
Personal property away from the premises limit of coverage is 10% or $1000.00 of Coverage A- Dwelling, whichever is more. The caveat here is this does NOT apply to guest's property- their property is ONLY covered while on premises.
There are special limits of insurance, in other words, designated amounts of maximum coverage for certain items. See table below:
|Maximum Limit of Coverage Amount
|| Items included
||Business personal property at the residence
||Personal records, deeds, securities, passports, stamps, letters of credit, notes (other than bank notes), accounts, proofs of debt, tickets, and manuscripts. Also included is the cost to replace, research, or restore the lost/damaged information
||Trailers not used with watercraft
||Watercraft, including trailers, equipment, and outboard motors (an outboard motor is a propulsion system for boats, consisting of a self-contained unit that includes engine, gearbox and propeller or jet drive, designed to be affixed to the outside of the transom)
||Electronic apparatus while in, on, or away from a motor vehicle, as long as it can be operated from the motor vehicle power source and retains its ability to be operated from a power source other than the motor vehicle. Includes tapes, wires, disks, records, and other media
||Business property away from the insured premises
||Bank notes, money, gold (not goldware), silver (not silverware), coins, platinum, medals, and bullion (Bullion is gold, silver, or other precious metals in the form of bars or ingots.
There are also types of property that are subject to a max amount of coverage if they are stolen. See table below for those items and their max coverage amounts.
| Maximum amount of coverage
||Type of Property
||Goldware, Silverware, and Pewterware
||Furs, watches, jewelry, precious and semi-precious stones
Coverage D- Loss of Use Homeowner's Coverage in Oregon
What exactly does this mean? Loss of use means when a residence or dwelling becomes uninhabitable. The coverage refers to that dwelling or residence being an insured property that has been damaged due to a covered cause of loss.
There are few different scenarios that would cause this coverage to kick in:
First, if the dwelling suffers a covered loss and is uninhabitable, the insurance company will reimburse the insured for the (necessary) increased cost of living expenses to keep a normal standard of living while the property is being restored/repaired. This is referred to as Additional Living Expense.
Second, there is Fair Rental Value. Fair Rental Value; if the loss occurred on the part of the residence premises that is rented out to others, the insurance company will pay the fair rental value while the building is repaired. Payments will be for the shortest time to repair/replace.
Lastly, if civil authority doesn't allow you to access your premises because of a covered cause of loss to a neighboring dwelling, the insurance company will pay Fair Rental Value or Additional Living Expenses for up to two weeks.
Understand your insurance and what it covers! Let our team of experts at Ferranti-Graybeal review your current coverage and create an Insurance Protection Plan that's suited just for you at a price you can afford!!
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