Limitations on Homeowners
Policies
Business
Use in the Home
Under most
homeowner policies, there are special limitations
on certain types of property. These items can be separately
insured. A
business run from the home is also limited, or coverage may be
excluded.
Depending on the business, coverage may be added by
endorsement to the
policy (as this
brochure from Vermont Mutual explains), or by writing a
separate policy called a
BOP
(Businessowners Policy). A building on the
premises for business
use only is NOT
covered under the homeowners
policy.
Jewelry, Fine
Arts, Collectibles
For an extra
premium, you might be able to buy endorsements
that expand or increase the
coverage on limited items.
Some of the most common endorsements cover jewelry, fine arts, camera
equipment, coin or stamp collections, computer equipment, etc.
Flood
Did you know
that your homeowners insurance does NOT
cover flood damage? Insurance against flood must be separately obtained.
FEMA's maps are important when it
comes to flood insurance.
If they show that your home sits in a 100-year flood plain, you must
buy
federal flood insurance in order to get a mortgage. If you live outside
a
high-risk zone, or if you no longer have a mortgage, flood insurance is
optional.
A flood insurance policy also reimburses you for the work that you and
other
family members did to sandbag your homes, move furniture and remove
debris.
Download a summary of coverage here.
Earthquake
Coverage
Earthquake coverage
may be added to the homeowners policy by endorsement, with an
additional
premium. Coverage is written with deductibles applying
separately to
building AND contents. Believe it or not, there is a fault
running right
through New
Hampshire.
Tenant
Occupied
Homes
Homes that
are rented to one or two families do not qualify for a
homeowners policy.
In this case, a Dwelling Fire policy is written.
This provides
coverage on the building and liability for the dwelling owner.
Tenants
must provide coverage on their own contents, and liability to protect
their own
liability exposures. When having this type of property, it
is best to
discuss it with us first, so the best type of policy may be written
based on
the exposure.
DISCLAIMER:
There
is no binding, adding, deleting, canceling, or changing of coverage
through the
use of this web site.
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