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 wants 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.

To discuss Property Coverage lets 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. 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.

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.

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!

Alan Plafker is President of Member Brokerage Service LLC, a Melrose Credit Union Service Organization. He is a licensed Insurance Broker and serves on the Board of Directors the PIANY (Professional Insurance Agents Association of NY) and on the Board of CIBGNY (Council of Insurance Brokers of Greater NY). His Agency insures thousands of polices for TLC Insurance as well as many policies for all types of insurance. You can reach him in his Briarwood, Queens office at (718) 523-1300 ext. 1082.

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