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Here ’ s a hint . Let ’ s say your brother is staying in your home while he is on vacation . There is a burglary and some of your brother ’ s things are also stolen . Will you have coverage for your Brother ’ s things ?
First , look at the DEFINITIONS section of your policy . This will tell you who is covered . Then go to the PERILS INSURED AGAINST where you will check to see if burglary and / or theft is covered . Then go to your DECLARATION PAGE to see what dollar amount of coverage you have for Personal Property . Next you want to find your Deductible amount on the DECLARATION PAGE .
So , according to the Policy Form I am reading now , your brother would be covered for his stolen personal property . You would be covered for your stolen personal property and any damage done to your home during the burglary . Let ’ s say your Personal Property limit is $ 100,000 and your deductible is $ 1,000 . For this loss , you would be covered up to $ 100,000 for this loss in total , less $ 1,000 . This would include your brother ’ s personal property . If your policy is endorsed to cover for replacement cost of personal property , you will be paid the depreciated value of each item at the time of loss . You would then be reimbursed the difference between depreciated value and replacement cost when each item is replaced .
Just remember this ……. who , what , where , how . Who is covered . What is covered . Where does coverage apply . ( most Homeowners Policies will offer a limited amount of personal property away from your residence ) How much is covered and how much will I be responsible for ?
It really is important for you to sit down and read your policies . The days when all policies were the same are over . There is now a basic form and every company can and does make changes to the basic form with endorsements and exclusions . When all else fails and your eyes have crossed and you just don ’ t understand what you are reading , just call your Insurance Agent for clarification .