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Article 1 of 1 in Homeowners Policy |
How homeowners’ insurance policies differ |
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Insurance policies don’t differ in basic policy structure—an HO 3 policy is the same from company to company, differing only in the amount of coverage a consumer wants.
Coverage may vary, not only in amount, but in a more specialized package for a buyer who has different or increased needs. For example, a policy can contain options, also called “riders,” “floaters,” or “endorsements.” These are additional coverages with additional terms and conditions.
For example, most homeowners’ policies have a cap on the coverage provided for personal property. You may want more coverage because your coin collection alone is worth more than the cap. You can have it in the form of a rider, which covers items of additional value, with the cost determined on the basis of the value of the belongings. Items of very high value (which you should have appraised) may have no limitations, but of course you’ll pay higher premiums.
Riders, endorsements or floaters may be added to a policy to cover most items or exigencies. You can add coverage for a theft in your home in amounts far beyond the limited coverage of an ordinary homeowners’ policy. Some companies will also allow you to buy a rider to cover the value of a second home or allow you to add a rider which covers other properties that you own and rent out. |
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