July 27, 2015

 Making Sure All Bases Are Covered

Summary: Homeowners forms commonly limit amounts paid for loss to certain classes of property. For example, Insurance Services Office form HO 00 03 05 11 limits are: money ($200); securities ($1,500); watercraft ($1,500); trailers ($1,500); theft of jewelry and furs ($1,500); theft of guns ($2,500); theft of silverware ($2,500); business property—on premises ($2,500), off premises ($1500-changed from $500 in the 2000 form); and some types of electronic apparatus ($1500). When discussing homeowners insurance with a client, the agent should make sure that the client understands there is often a need to increase the coverage for these classes of property, either by endorsement to the homeowners policy or by separate insurance (a boat owners' policy, for example).