David Klein Agency
Insurance

58-47 Francis Lewis Blvd
Suite 101
Bayside, NY 11364
Phone:(718) 631-0882
Fax:(718) 631-0945

NY Homeowners Insurance

Whether you own or rent, potentially, you could lose a lot. Why? Your chances of being robbed are probably greater than you think --someone commits a burglary every ten seconds, or in just about the time it'll take you to read a couple of these paragraphs. And the FBI reports that two out of three burglaries occur in homes, condos or apartments.

Other Possibilities
Then there's all the other possibilities, big or small: fire, smoke, water damage, and vandalism... Any one of them could turn your life upside-down. Fortunately there's insurance to help protect you from these type of losses. But that's not the only good reason to insure your home and the things in it.

Let's say you're on a vacation. You've checked into your room, scoped out the view from the balcony, tested the TV and headed down to the pool --when the air conditioner catches fire. By the time you get back, your suitcase and all your clothes are a charred memory. And the video camera you brought to record this relaxing trip? That's ruined too.

But here's the good news. If you've got home or renters insurance, you're loss would probably be covered.

Worth Considering
If you're a renter, how do you know where your landlord's insurance leaves off and your policy picks up in the case of fire, flood or other disasters, natural or otherwise? If you own a home or condo, does your insurance policy cover the replacement cost of all your belongings? What about your prize, rare record albums? Are they covered?

The Basics of Property Insurance

Key Elements
First, you may need help speaking the language. Like any industry, insurance has some terminology all it's own. When people in the business talk about insurance, they usually use two important terms Peril and Risk.

Perils are the possible causes of a loss: fire, windstorm, hail, theft or vandalism are some perils. Risk is the chance of loss.

Another important point to understand is there are two ways a loss to your property can be settled. Usually they're referred to as Actual Cash Value and Replacement Cost Coverage.

If your policy pays Actual Cash Value, you'll be paid the current replacement cost of whatever you lost, minus depreciation (which is the estimated wear and tear on the thing you lost or the loss in value of that item because of aging and use). The total amount you'd be reimbursed would be subject to the specifications of your policy -- in particular, the policy limits (a term described in detail below).

If you signed up for Replacement Cost Coverage, you'll receive the amount it would cost for you to replace the damaged property with the same kind of goods, brand new. Here again, the total amount you'd be reimbursed is subject to the terms and conditions of your policy.

Lastly, realize you have Deductibles and Limits on your policy. Although liability coverage rarely has an applicable deductible, the portions of your homeowners policy covering your house and other dwellings, as well as your personal property generally include deductibles.

A Deductible is the portion of the loss that you agree to pay out of your own pocket, before the insurance company pays the amount they're obligated to cover. Deductibles serve to keep your insurance rates reasonable; raising the amount of money you are willing to pay out of your pocket for a loss (your deductible) will lower your insurance premium. Deductibles also serve to deter minor claims which, if continually filed, would also drive up the general cost of insurance.

To properly price policies, an insurance company must contain the total amount of loss it will pay to each policyholder. This is called the Policy Limit and is specified in your policy or contract. Logically, increasing the limits of coverage increases the price of that insurance, although not necessarily in a linear manner.

All insurance policies share these key elements, while most homeowners policies include the following major coverage options:

Dwelling Protection: protects your residence or the structure you live in against losses caused by the perils listed in the policy. For example, if a windstorm blows some shingles off your roof, it could be covered here.
Protection for Other Structures on the residence: this section of the policy protects items like a barn, a detached garage, or a swimming pool. If a storm damages a fence in your yard, it could be covered here.
Personal Property Protection: covers movable property like a stereo, bicycle, clothing, or paintings. They're covered even if someone else is using them, or even if they're not in your home --this is the section that covers your clothes and video camera in that hotel room. If you have a home office, your personal computer generally is covered up to $5,000, providing the computer is located in your home. Realize, however, most homeowners policies set special coverage limits for certain items or categories of property like jewelry, money, manuscripts -- your dissertation. If you need to increase the limits for these possessions you'll need an endorsement (or amendment) to your base policy.
Family Liability Protection: will pay the damages if you're legally liable for negligence that resulted in bodily harm to someone else or damage to their property. Let's say you're playing catch with your son or your friends. You wind up and let fly with a high hard one --a little too high. It explodes through your neighbor Ed's living room window and knocks over his wife's china cabinet breaking every antique dish (quite a throw!). The damage you caused could be covered here.
Guest Medical Protection: also called "good will" coverage, it pays medical expenses if visitors to your home are injured, regardless of who is at fault. Say Ed from next door comes over to help you plant a new tree...he accidently trips on a shovel and breaks his arm in the fall. Sure Ed's notoriously clumsy, but you're a good friend, you rush him to the hospital so he can get his arm set. The medical expenses resulting from this accident would be covered by your homeowners policy guest medical coverage. Paying these type of expenses encourages policy owners to be shrewd and act quickly to help mitigate further damage and foster "good will."

Renters and condominium insurance doesn't include the first two coverages listed: dwelling and other structures protection, because technically the policyholder doesn't own the dwelling they reside in. Instead, the landlord and the condo association (respectively) must each secure coverage for the building.

Covering the Basics
Those are some of the basics. By working with a professional you can formulate your insurance strategy to help meet your unique needs. A good place to start is to ask yourself:

If your home and everything you own were damaged by a fire...

Could you afford to completely rebuild it?
Would you be able to replace all your personal possessions?
Would you have a place to stay during reconstruction, and could you cover extra living expenses?

If you choose Building Structure Reimbursement Extended Limits Coverage (in addition to the base policy), in many states you'll receive up to 120% of your dwelling limit to repair, rebuild or replace your dwelling if damage or loss results from a covered peril. Additional expense coverage will pay for the increase in costs if you need to find a place to stay, including food and transportation. And whether you own or rent, you can get Replacement Cost Coverage that will cover the full amount to replace most personal property like your stereo or VCR.*

There are lots of other options. You might have a chest full of sterling silver, a collection of expensive watches, or the next Hope diamond engagement ring. You can purchase coverage to help protect all of them. Did you know some fire departments charge you for coming to save your house? When you have the right policy, you're likely to be covered even for that expense.

An Insurance professional can help you with the details. Don't forget to ask him or her about any discounts you may qualify for, including:

New House Discount --if your home is less than 5 years old. In some states, you can qualify at 9 years or less.
Protective Device Discount --if you have smoke alarms, fire extinguishers, or dead bolt locks.
55 or Older and Retired Discount

Understanding Property Insurance
You're on your way to understanding property insurance. Maybe you'd like to get a basic idea of just how much coverage you might need. Here's how to get started: make a list of everything you own in your home. That includes your clothing, furniture, TV, stereo. Everything. Add up the dollar value of the entire list. The policy section we told you about called personal property insurance protection should be able to cover this total. That's just the first step in designing an insurance strategy to help meet your needs.

To continue the process, talk to an insurance professional .

*Insurance is regulated on a state versus federal basis so policy conditions, terms and eligibility can vary depending upon your state's laws and regulations. Coverages are subject to the policy terms and conditions detailed in the insurance contract issued after purchase.

David Klein Agency Insurance

58-47 Francis Lewis Blvd Suite 101 Bayside, NY 11364 Phone:(718) 631-0882 Fax:(718) 631-0945

David Klein Agency
Insurance

58-47 Francis Lewis Blvd
Suite 101
Bayside, NY 11364
Phone:(718) 631-0882
Fax:(718) 631-0945