Real Estate: The finer points of your homeowner’s policy

By Jonathan Priest

Congratulations! You… are a homeowner. Maybe you’ve owned your home for years, or maybe you just had your loan closing after a hard-fought battle for your pre-approval, multiple offers were made over asking price, and you made several concessions to the seller, but either way, you did it.

Now that the dust has settled, it’s time for a quick and painless review of some optional coverages available on most home policies that would allow you to customize your coverage to fit your specific needs.

Below, I’ve laid out the terms, what they mean, and why you might or might NOT need that specific coverage!

Scheduled items coverage

This is designed to cover specific, special items of personal property such as jewelry, antiques, firearms, camera equipment, musical instruments, etc. It allows these items to be listed, or “scheduled” onto the policy individually, and usually allows for a low or even zero deductible on them in the event of a claim. This coverage is usually very inexpensive and protects the items much more thoroughly than if they were just part of your regular personal property coverage. For example, were the stone to fall out of an engagement ring and be lost, or “mysteriously disappear”, it likely would not be covered on the regular home policy, or if it were, it would be subject to the policy’s deductible. In many cases, that could be $1,000 or even more! In order to schedule items, you will need an appraisal, bill of sale, or something similar, to show evidence of value, along with a detailed description of the item(s).

Backup of Sewer or Drain

This coverage, just as it sounds, is designed to help cover losses to items and property in your basement as a result of a backup of a sewer or drainpipe. It is typically available in different amounts, and the amount of coverage should be determined by how much property might be damaged in such a loss. You might just need 5,000 to protect your furnace or increase it to cover a washer and dryer and additional items as necessary, depending on how much living space is in your cellar.

Ordinance and Law

This add on to your policy should only be necessary if you have an older home. It would protect you if you had a loss involving your home’s structure, where the electrical, plumbing and/or heating need to be brought up to code during the repair process. It is typically available as a percentage of the total replacement cost of your home. I’ve actually had a client need to use this coverage in a 200-year-old home, and he was advised that without this coverage I’d recommended, he would have been out of pocket for tens of thousands of dollars for those updates!

ID Restoration/Protection

In this day and age, it’s very common to hear about (or experience first-hand) a person’s identity being stolen, and this coverage is designed to take some of the stress and wasted time out of the equation. It typically allows for a bonded employee of an ID restoration company (meaning the employee is trustworthy) to be appointed limited power of attorney for you. This would allow them to make those endless calls to credit bureaus, creditors, etc. to straighten out the mess that your credit and finances might be in after such an ordeal.

Computer Equipment

Just as it sounds, this coverage is built to protect your office and computer equipment against losses and can be especially important with so many folks working from home this year!

Debris Removal

This coverage helps to pay for the removal of the debris and cleanup in the event of a covered claim, and is an often neglected but necessary part of the process.

The Takeaway

Please take just a few minutes to review your current policy, and make sure that you have all of the protection you need! <

Remember, my staff and I are just a phone call away at 207-893-8184 to answer any questions you have, whether you are insured with me or not. I am also available on Facebook Messenger @ Jonathan Priest MetLife Auto and Home.