We combine Auto and Home to motivate clients to buy both coverages together, from one broker and one insurance company. This avoids massive legal fees when a large claim involves both coverages and two insurance companies are involved.
The policy consists of Bodily Injury Liability (BI) for injuries the approved driver of your car does to other people, including car passengers, and Property Damage Liability (PD) which pays to repair/replace 3rd party vehicles and property that your driver damaged or destroyed. Medical Payments will pay the medical expenses of the driver and passengers of your car. Uninsured and Underinsured Liability (UM/UIM) is a Key Coverage that steps in and pays the medical, pain and suffering incurred by your own driver and your passengers when your car is hit by a vehicle carrying little insurance, and is superb coverage. Comprehensive (Comp) pays the damage to your vehicle caused by other than a vehicle accident and Collision pays to repair/replace your car when damaged in an at fault accident or by a hit and run accident. Towing and labor is roadside assistance and Rental Reimbursement pays the cost of the rental after an accident. The key here is to buy the highest limits required by your Personal Umbrella Liability Policy, usually BI of $250,000 Per Person, $500,000 Per Accident, UM and UIM at the same limits, and PD of $100,000 Per Accident. You should buy Comp and Collision unless the car is too old and worth very little. There are many, many discounts to lower premiums without reducing coverage.
Your home is one of your most valuable assets and must be preserved. The key to homeowner coverage is understanding “Replacement Cost,” so let’s review the MA Division of Insurance definition: “Replacement Cost is the amount to repair or replace the damaged property using materials “of like kind and quality.”” Unfortunately, “The Uniform International Residential Building Code of 2009,” passed in all 50 states by 2012, assisted by The Executive Division, mandates that 1 and 2 family dwellings be built “seismic, wind and flood resistant,” the equivalent of reinforced concrete construction, but with wood. Therefore, “Replacement Cost” only pays the full cost to rebuild a damaged home “to Code” if the damaged home was built after the passage of the “Code”, which was 2012 in MA. A 1950 house with a huge loss today would only receive “replacement cost” payments to replace those 1950 materials, a “replacement cost” payment of approximately 40% of the Code required material and labor, requiring the homeowner to pay the remaining 60% to rebuild the house “to Code” to prevent the house being torn down under another “Code” provision.
Our “Beacon Plan” (below) provides the perfect solution to all these problems.
HO “Dwelling Coverage” pays to repair or replace anything that is part of or attached to your home, and typically values the house using industry Replacement Cost software. “Other Structures” are structures not attached.
HO “Personal Property” is anything that will not damage the house if removed, making some appliances personal property and some part of the house.
“Additional Living Expenses” pay the relocation costs when you are forced to evacuate after a loss. “Medical Expenses” pay costs from an accident or a pet.
“Personal Liability” is a massive feature of the policy and should be purchased to the minimum limits required by your Umbrella Policy, which is usually $300,000 per loss. This insures against liability from anyone injured on your property, but can be greatly extended. You want liability insurance that covers your lifestyle, because personal non-auto liability claims can be huge.
Perils covered should be everything, from mold to quake to water backup, because no one can predict what will happen tomorrow. You reduce costs with increased deductibles, not reduced coverage. When a claim hits $50,000 the deductibles disappear, which few people realize.