Options That Fit Your Needs
As an Independent Trusted Choice Agency, Eagle Insurance searches multiple carriers to find the best rates for the coverages you are looking for. We work with you to identify your insurance needs and use our access to multiple companies to deliver the product you are looking for.
When purchasing homeowner’s insurance, the first thing a homeowner must decide is which type of coverage level they desire. There are three different levels of coverages: Basic, Broad and Special. The difference between these coverages can be confusing and lead to a large or unexpected gap in insurance coverage. Below will explain the differences in Basic, Broad and Special Form coverages. These are the typical coverages that may vary by company.
Other coverages to ask your agent about:
Replacement cost on outbuildings
Special Form coverage for outbuildings, farm machinery, equipment, and tools
$0 deductible for cab glass
Farm Extra Expense
Property Damage Liability for Spray Drift of Agricultural Chemicals
Farm Pollution/Clean-Up Liability
Scheduled Farm Personal Property
Unscheduled Farm Personal Property (Blanket)
This is the least comprehensive of the three coverage options which only covers named perils. This means if a coverage is not specifically named in the policy, there will be no coverage. For example, if something happens to your home by an event not on the list, you’re not covered. A Basic Form policy tends to be very limited and should be used with care. Typical coverages included in a Basic Form policy are:
• Windstorm or Hail
• Aircraft or Vehicle Collision
• Riot or Civil Commotion
• Sinkhole Collapse
• Volcanic Activity
This coverage is bit more expanded than the Basic Form coverage. Just as with the Basic Form policy, a Broad Form policy covers only named perils. Typical coverages included in a Broad Form policy not only include those listed in the Basic Coverage but also:
• Burglary/Break-in damage
• Falling Objects (like tree limbs)
• Weight of Ice and Snow
• Freezing of Plumbing
• Accidental Water Damage
• Artificially Generated Electricity
Special Forms Coverage
This type of policy is the most inclusive of the three options. All perils not listed below are covered perils. This type of coverage can be extremely beneficial to you since Special Form coverage coves most hazards one might never expect. However, if something happens to your home, and it is on the list, the policy will provide no coverage. The typical exclusions for a Special Form policy are as follows:
• Ordinance of Law
• Power Failure
• Nuclear Hazard
• Intentional Acts
Now you have chosen which type of coverage you need for your home, next is to figure out the amount of coverage needed.
This is done by computing the replacement cost of your home via Marshall & Swift/Boeckh computation.
With the replacement cost calculated, the following coverages are then determined:
Coverage A: Dwelling
Coverage B: Other Structures
This covers other structures around the property, such as a garage or shed, which are not used for business purposes. Typically, this amount is limited to 10% to 20% (depending on the company) of the Coverage A, with additional amounts available by endorsement.
Coverage C: Personal Property
This covers personal property, with limits for the theft and loss of particular classes of items (such as jewelry, guns, money, coins, etc.) which is typically 50–70% of Coverage A, depending on the company. Typically, personal property is covered as actual cash value, which will pay the cost to replace belongings, minus deprecation. Replacement cost for personal property can be purchased for an additional premium, which would replace belongings at current full cost.
Coverage D: Loss of Use/Additional Living Expenses
Coverage E: Personal Liability
Coverage F: Medical Payments
Underground Service Line Coverage
This optional coverage provides coverage for direct physical loss to service lines that are owned by the insured or for which the insured is legally liable to repair. This will include such things as underground pipes, including their valves and equipment and also underground wires; that convey a utility service such as water, sewage, electricity, gas, steam, or communications to or from the residence on the described location. The loss must be caused by or result from a mechanical breakdown, artificially generated electric current, wear and tear, freezing, including frost heave and thaw, or weight of equipment, animals, or people.