Home Page Group Health Individual Health Business Insurance Home and Auto Insurance

A homeowner policy does a lot of work. Consider what you get for your premium dollars. The amount you pay to an insurance company handles many, many types of losses to your residence, your garage (whether attached or, increasingly rare, a separate structure), other structures (such as barns, sheds, gazebos, pools, permanently installed playsets), furniture, furnishings and personal possessions.

In order to make things manageable, the amount of coverage provided is based on the amount of coverage that is written for the residence; typically as a percentage of that amount. Just for example a home may have the following coverages:

Residence Coverage



Garage/Other Structures Coverage


20% of Residence Coverage

Contents/Personal Property Coverage


50% of Residence Coverage

In the above instance, your insurance premium is based on the amount that shows for the residence and the other amounts are applied automatically. So let’s focus on your contents and possessions and the other issues that exist with a typical homeowner policy.

The amount of coverage provided for items such as furniture, appliances, clothes, toys, etc. applies in full to all of the items that are always kept in your house. That coverage usually also applies to items that you, occasionally, take along with you to other places, such as when you are on vacation. However, most policies include important limitations and one of them has to do with property that is permanently stored.

When property is kept at a different location on a full-time basis, a typical homeowner policy restricts the amount of coverage for that property. For instance, contents that belong to, say, a seasonal home may be restricted to 10% of the coverage that applies to a person’s primary residence. At one time, property that was kept in storage at a separate location (such as at any self-storage facility) was fully covered by the contents amount shown on the homeowner’s policy. Recently, some policies have made a BIG change and may now restrict protection to a MUCH LOWER amount such as $2,000 or for 10% of the contents amount that is listed on a policy.

If you store any significant amount of property at another location, it would be wise to be sure that it is adequately protected. Don’t assume….check and be sure! Your local insurance professional is available to help you do so!

COPYRIGHT: Insurance Publishing Plus, Inc. 2011

All rights reserved. Production or distribution, whether in whole or in part, in any form of media or language; and no matter what country, state or territory, is expressly forbidden without written consent of Insurance Publishing Plus, Inc.

Posted 7:56 AM

Share |

No Comments

Post a Comment
Required (Not Displayed)

All comments are moderated and stripped of HTML.
Submission Validation
Change the CAPTCHA codeSpeak the CAPTCHA code
Enter the Validation Code from above.
NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive

View Mobile Version
HomeClaimsGet A QuoteContact Facebook Twitter LinkedIn Youtube Powered by Insurance Website Builder
174 Center Street | Winona, MN 55987
O: 507-452-3366 | TF: 800-657-4448
975 34th Avenue, Northwest Suite 302 | Rochester, MN 55901
O: 507-424-4400 | TF: 800-657-4448