HOMEOWNERS INSURANCE  

Your home may be the largest investment you will ever make so be sure that it is adequately insured with the proper insurance coverage. Although the likelihood of a total loss is remote there are many perils that can cause significant damages and inconvenience so don’t find out after the loss occurs that you lack the proper insurance coverage. Here are a few thoughts to consider:  

Be sure your home is insured for its replacement cost.  

Many times this is easier said than done particularly if you have been insured with the same insurance company for many years. Most Homeowner policies have an automatic “inflation” increase each policy year. However in many cases the increase is not adequate to keep pace with rising building material prices and labor. The old school thought of $125 to $150 per square foot rebuilding cost for a typical Long Island home is not longer the rule of thumb, in fact it’s at least $200 per square foot at a minimum; if you’ve remodeled with high end kitchen and baths the replacement cost could be even more.  

Initially the insurance company will perform an inspection and replacement cost appraisal however it’s up to you the homeowner to be sure the replacement cost keeps pace with construction inflation which may vary from year to year.  

Understand the difference between “Market Value” and “Replacement Cost.”  

Currently we are in a period where the “Market Value” may be significantly less than the “Replacement Cost.” Back in the mid 2000’s we were at the other end of the cycle where “Market Value” exceeded “Replacement Cost.”  

Replacement cost IS NOT; the Market Value of the home, it is not the purchase price of the home or the outstanding amount of any mortgage loan. Replacement Cost is the cost to rebuild your home with like materials and design.  

CONDO INSURANCE  

Instead of insuring the whole dwelling as with a Homeowner Policy, a Condo Policy typically insures the Walls, Floors, Ceilings, and Bath Fixtures. Be certain to review the Condo Master Policy to determine where the Master Policy ends and where yours begins.  

CO – OP/RENTERS  

No coverage for any part of the building since you do not own any part of the building. Co-Op/Renters provide the coverage’s listed below.

In addition to insurance coverage on the dwelling there are additional coverage’s included with a Homeowners/Condo/Co Op/Renters Policy:  

Liability  - Provides coverage in the event some one sustains an injury on your property, cover’s you in the event you damage the property of others or cause unintentional injury to some else including personal injury torts such as libel, slander among others.  

Loss of Use – Provides coverage for living expenses such as a hotel when you can not live in your home during the period of restoration due to a covered loss.  

Personal Property – Provides coverage for your personal property such as furniture, carpeting, window treatments, electronics, clothing, essentially the property that is not built into the dwelling. Subject to value limitations for Jewelry, Furs, Silverware, Collectibles among other specialized property.  

Personal Property Floater – Provides coverage at an “agreed value” for: Jewelry, Furs, Silverware, Cameras, Musical Instruments, Golf Equipment, Fines Arts, Collectibles, Computer Equipment, and Sports Equipment.    

PERSONAL UMBRELLA LIABILITY POLICY  

People are suing each other today more than ever. Verdicts amounting to hundreds of thousands, if not millions of dollars are being awarded by juries every day. If you accidentally injure some one or damage their property you could end up being sued with monumental legal defense costs. Coverage amounts are written in increments of $1,000,000 and supplement your Homeowner Policy and Personal Auto Policy. The premiums are modest and why let an accident potentially wipe out a lifetime of savings.