Mayo Associates, Northfield, Vermont

VERMONT Homeowner's Insurance Coverages
Please Note: WE CAN NOT QUOTE ON OUT OF STATE INSURANCE.

The homeowner's policy combines two primary coverages into one policy - property and liability coverages.

Section I - provides protection for direct physical damage to your home, detached structures, and your belongings; as well as additional living expenses should your home become uninhabitable due to a covered loss; up to the limits select.

Section II - provides liability coverages for you and members of your household for liability exposures surrounding your home, and those arising from other non-business related activities. The coverage provides both bodily injury and property damage coverages for damages you may unintentionally cause someone else due to your negligence. Liability coverage is written on a "Combined Single Limit" per occurrence basis on homeowners policies, which means that your insurance company will pay up to the liability limit that you have selected for all bodily injury and property damage liabilities arising from each occurrence or loss.

Property Coverages

Dwelling.

Provides coverage to your home, less the chosen deductible, up to the limit you have selected. Depending on the type of homeowner's policy you purchase, loss settlement could be on an "Actual Cash Value (ACV)" basis (replacement cost minus depreciation), or on a "Replacement Cost Basis" (no deduction for depreciation). Most policies are written on a Replacement Cost Basis, and only unique situations would warrant use of an ACV contract.

Other Structures.

The normal limit of this coverage is 10% of the dwelling coverage amount. This can be increased by endorsement if necessary. Coverage for Other Structures on the premises encompasses any appurtenant structure which is not physically attached to the Dwelling structure such as: walls, fences, sheds, barns, above-ground pools, etc.; when not used for business.

Personal Property or Contents.

Standard limit for this coverage is between 50% and 70% of the Dwelling coverage amount. This section covers your personal belongings against certain named perils such as fire, lightning, theft, smoke damage, explosion, vandalism, etc. There is also a 10% additional coverage for any personal property away from the premises. It is important to remember that certain types of personal property have restrictive limits as to the maximum value paid for certain types of losses (see Scheduled personal property below). See your policy or call us for more details.

Additional Living Expenses.

Standard Limit for this coverage is 20% of the Dwelling coverage amount. Some preferred policies do not limit this coverage, and provide coverage for actual loss sustained for up to 12 months following a covered loss, such as a fire. This coverage provides benefits for the costs of living away from your home during its reconstruction after a covered loss. This would include rental of a temporary home, apartment, motel room, etc.

Scheduled Property

Some personal belongings should be listed separately on your homeowners policy.Coverage for certain classes of personal property, due to their high value, uniqueness, particular susceptibility to theft, or notoriety for fraudulent claims; have been given limited coverage on a standard homeowner's policy.Thus, it is incumbent upon you to individually insure, or "Schedule", such items.This not only avoids the special limits of the standard contract, but also provides more comprehensive coverage (open peril), and often avoids the policy deductible as well.Please let us know if you would like clarification of this important clause on your homeowner's policy.Some of the types of property that can be scheduled (current appraisals may be needed):

Items that can be scheduled ( with appraisals):

1. CAMERAS & RELATED EQUIPMENT
2. FURS
3. FINE ARTS
4. MUSICAL INSTRUMENTS
5. JEWELRY
6. COMPUTERS
7. GOLF EQUIPMENT
8. COLLECTIBLES
9. GUNS

Liability Coverages

Personal Liability.

Limits available are $100,000, $300,000, and $500,000. Provides protection for unintentional bodily injury and property damage that is not business related that is caused by you or anyone living in your home.

Medical Payments per Person.

Refers to coverage for the cost of first-aid type treatments for others injured on your premises. This does not provide coverage for you or any member of your household. Limits available are $1,000, $2,000, $3,000, $4,000, and $5,000 per person. Just like the Medical Payments coverage on an auto policy, this is "good-will" insurance, and is not dependent upon negligence or liability on your part for coverage to be provided.

Property of Others.

This provides up to $250 of coverage for damage to the property of others while in your care, custody, and control. Some Preferred policies are now providing a $500 or even a $1,000 limit for this coverage.

Other Coverages

There are many more coverages that can be added to the Homeowner's policy that make the Homeowner's flexible enough to meet everyones needs.

This is a brief synopsis of the normal coverage found in a Homeowner's Policy. The actual policy should be referred to for the legal interpretations and limitations of the policy.

For additional information, please e-mail us at:

MAYO@mayo-insurance.com

Call at 1-802-485-6061 or

1-800-982-5849

or fax us at 1-802-485-6065.

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