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Q:
What
kind of home insurance should I get?
A:
A
standard homeowners policy protects against fire,
lightning, wind, storms, hail, explosions, riots,
aircraft wrecks, vehicle crashes, smoke, vandalism,
theft, breaking glass, falling objects, weight of
snow or sleet, collapsing buildings, freezing of plumbing
fixtures, electrical damage and water damage from
plumbing, heating or air conditioning systems, according
to the Insurance Information Institute, a Washington,
D.C.-based nonprofit group for the insurance industry.
Such policies are "all-risk" policies, which cover
everything except earthquakes, floods, war and nuclear
accidents. A basic policy can be expanded to include
additional coverage, such as for floods and earthquakes
and even workers' compensation for servants or contractors.
Home-based business-coverage, an increasingly popular
rider, does not cover liability associated with the
business. Insurance experts recommend that homeowners
obtain insurance equal to the full replacement value
of the home. On a 2,000-square-foot home,for example,
if the replacement cost is $80 per square foot, the
house should be insured for at least $160,000. For
personal items, homeowners can increase their coverage
beyond the depreciated value of items such as televisions
or furniture by purchasing a "replacement-cost endorsement"
on personal property. Some experts recommend an inflation
rider, which increases coverage as the home increases
in value.
Copyright
1999 Inman News Features
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