Your Home Business: Know Coverage

Test your knowledge of your homeowners insurance

Are you covered? __ While caring for a child for a fee, the child is injured in you home.  The parents expect you to cover the hospital bills. __ You replace your friend's car brakes for a "few bucks" and the car is damaged or your friend is hurt in some way.  He expects compensation. __ A friend slips on an icy walk or trips on a toy while picking up the craft item she paid you to make.  She expects you to cover medical bills. __ You use your detached garage for a small woodworking business and the garage is damaged in a windstorm.  You want your garage rebuilt. __ You do word processing for a fee from your home.  Your computer is stolen.  You want it replaced. __ You are a self-employed sales representative with an office in the home.   While entertaining a client in your home, the client is injured and expects compensation.

In each situation described, the answer is probably "not covered" --- unless you have added specific coverage to your policy for this home business.  Take away the compensation, or business aspect, and each would probably be "covered".

Situations like those described can be covered in one of three ways:

• Your employer may cover it if your business is conducted on behalf of your employer.
• A business insurance policy may be purchased to cover it.
• Your home insurance policy can sometimes be broadened to cover it.

If you have any concerns about a business-type activity in your home, call us.  We'll be happy to discuss it with you.

Controlling household expenses is something we all try to do.  We want to help you reduce your home insurance costs when possible.  Here are some points to consider:

Smoke alarms.  Check your policy or contact us to see that you are receiving a discount.  If you don't have alarms, get them.  Not just for the discount, but for your family's safety.

Higher deductible.  The standard deductible today is $250.  If yours is lower, you are paying an added charge.  If you choose a $500 or higher deductible, more savings is available.

Delete unneeded coverage.  Review your policy.  There may be jewelry listed that has since been sold, endorsements for businesses in the home that are no longer in operation or other unnecessary coverages.

Central station alarms.  Fire and burglary alarm systems that automatically dial a central station can provide both good security and a significant premium savings.

Combine home and auto insurance in one company.  Companies often offer a discount on the home and auto insurance or both when carried by the same insurer.

In addition to these money saving tips, some companies offer discounts if you have fire extinguishers, deadbolt locks or a loss free record.  Check with us to see if your plan offers any of these options.

Remember, under insuring is not a recommended today to save premium as it can lead to serious problems settling a claim.

Whether it's a question about cost or coverage, we're always willing to review any insurance concerns with you.  Please call us.

Homeowners Insurance: Covering the Bizarre Losses

Just how broad is your insurance coverage?  Will it cover sunken tractors?  This true story has occurred several times: our client parks his riding mower on a hill, dismounts, and the tractor slips out of gear and rolls into the pond.  Covered?  Only if you have an HO15 endorsement on your policy.

You don't have a riding mower or a pond you say?  The HO15 endorsement broadens a homeowners policy so that it also covers other personal property lost due to extraordinary situations.  Consider these other covered losses:

• Lost jewelry or gemstones falling out of jewelry not specifically insured (subject to a policy dollar limit).
• Loss in value when a gemstone is scratched or cracked (subject to a policy dollar limit).
• Cameras or other personal items falling overboard from a boat or a capsized canoe.
• A hot iron failing on and scorching an area rug.
• A deer crashing through a sliding glass door causing extensive damage to household contents as it struggles to deal with the unfamiliar surroundings of a family room.
• Raccoon damage (rodents and vermin are not covered).
• Lost hearing aids, eyeglasses, telescopes, cameras, etc.
• Spillage of paint, India ink, nail polish, acid, bleach, and other chemicals that damage household contents.

Most home insurance policies list 17 or 18 different perils of coverage for household contents that do not include the above or numerous other bizarre possibilities.  The H015 will cover the above situations --- subject to your policy deductible.