INSURING YOUR PERSONAL RESIDENCE

BY ALAN PLAFKER, President & CEO
MEMBER BROKERAGE SERVICE LLC
A MELROSE CREDIT UNION SERVICE ORGANIZATION

Everyone should insure their residence. Package policies are available for all types of residences - APARTMENTS, CO-OPS, CONDOMINIUMS, and HOMES. These policies provide coverage for property, liability and can be enhanced with optional coverages. Most people who own a home have a Homeowners Policy because it is required by the mortgage.

For any type of residence, a policy should include Liability Coverage to protect you from a personal injury or property damage lawsuit. You could be sued if someone is injured on (or off) your premises and want to hold you liable.

Most policies offer a choice of limits from $100,000 to $1,000,000. This is a very important coverage and should be included on any residential insurance policy. It provides for costs associated with defending you in a lawsuit, and also if you are held legally responsible for fire damage to your apartment and the building where you live.

The following items usually are not covered, or have limited coverage:

  • motor vehicles;

  • commercial buildings on your property or buildings you rent or lease to others except a private garage;

  • pet injuries or damage to your property caused by your pets;

  • jewelry, coin collections, silverware, furs and other valuables above specified limits that particularly are vulnerable to theft.


Special riders or endorsements often can be added to your insurance policy to cover some of these items.

Additionally, many homeowners and renters policies do not cover perils such as nuclear accidents, earthquakes, war, floods, mud slides and certain acts of God. Audiotapes and compact discs kept in automobiles also may not be covered.

To discuss Property Coverage let’s start with the simplest, least expensive type of residential coverage, and progress to more complex policies.


RENTERS INSURANCE

Coverage is provided for your contents and personal property, including your possessions and belongings such as:

  • furniture,

  • clothing,

  • appliances, etc.


It covers:

1. personal property,

2. protecting the renter against many causes of loss such as:

  • fire and smoke,
  • lightning,
  • vandalism,
  • theft,
  • explosion,
  • windstorm and water damage from plumbing, as well as
  • offering coverage for personal liability.


There are limits on special items such as jewelry, silverware and fine arts but there are optional coverages available to provide broader coverage or to schedule Valuable Items for the broadest coverage.

Most companies also offer Contents Replacement Cost which allows you to repair or replace most personal property with no deduction for depreciation. Another valuable coverage that should be included is for Additional Living Expense to cover the cost if you have to move out during repairs after a property loss.

Your landlord cannot insure your personal property:

  • your personal computer,

  • clothes,

  • stereo,

  • television,

  • jewelry,

  • furniture,

  • bicycle,

  • artwork, and

  • other items

against destruction or loss. Renters insurance, however, will give you both property and liability insurance—and it’s very affordable, typically costing less per month than a cable bill.

Renters insurance provides essentially the same coverage as homeowners insurance, but without coverage on the dwelling.


CO-OP AND CONDOMINIUM INSURANCE

Coverage is added to the Renters Policy to extend to the special needs of Co-Op & Condo owners. An owner may have made substantial improvements to the property and need more than just contents. Coverage can be added to include the improvements & betterments made to the building structure within your apartment.

Special Kitchen & Bath additions like cabinets & fixtures and expensive floorings are examples of property that is not contents. Also, coverage can be included to provide for a loss assessment, which can be charged to all unit owners due to a loss on common property, which exceeds the master building policy limit.



HOMEOWNERS INSURANCE

Homeowner policies include the Liability Coverage and Personal Property Coverages we’ve already discussed, and add a most important coverage for the buildings on your property. It is important to determine the correct replacement cost to rebuild your home after a loss, and insure the proper value to collect completely in the event of a loss.

Insurers generally recommend you insure your home for its full replacement cost which means it is insured under a homeowners policy for 100 percent of the cost of repairing or rebuilding it at the time this becomes necessary. If you purchase a guaranteed replacement cost endorsement, you would receive the full amount you need to rebuild regardless of inflation.

Most insurers require you to insure your home for at least 80 percent of its replacement cost to receive full coverage on a partial loss. It is wise, however, to insure your home for its full replacement cost. Insuring it for less could prove quite expensive should you incur a major or total loss.

A number of factors determine the cost of your homeowners policy including:

  • the type of policy you choose;

  • how much insurance you carry; and

  • the size of your deductible;

  • the construction of your home or apartment as some buildings are more fire resistant than others;

  • available fire protection in your community and where you live.


In general, there are many options available to be properly insured and many limitations in the policy you should know about. Remember, Flood is excluded and should be covered on a flood policy. Choices of deductibles and available discounts for dead bolt locks, fire alarms, smoke detectors, and other equipment can reduce the cost off your insurance.

Call your insurance agent now for an Insurance review, and make sure you are covered.

Insure your future, start planning NOW, before it is too late!

Your Professional Insurance Agent …
We want you to know about the insurance you’re buying.

Alan Plafker
  • President of Member Brokerage Service LLC, A Melrose Credit Union Service Organization
  • Licensed Insurance Broker
  • President and Member of the Board of Directors, PIANY, Professional Insurance Agents Association of New York
  • Active Member of CIBGNY, Council of Insurance Brokers of Greater New York
  • Treasurer, New York Independent Livery Driver Benefit Fund Board of Directors
His agency insures thousands of policies for Taxi Limousine Commission insurance as well as many policies for all types of personal and commercial insurance. He can be reached in his Briarwood, Queens office at 718-523-1300 X1082, or www.MemberBrokerage.com.


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