WEDNESDAY, JULY 9, 2014
Most people are vigilant about keeping their homeowner's insurance policy up-to-date, but not many know exactly what it covers. A common question involves garages. Are they covered under the homeowner's policy, or do they need separate coverage? And what if the garage is detached? Does that make a difference?
Typical homeowners insurance covers outbuildings or structures that are detached from your home, such as sheds and garages — up to the policy limits, which is usually a percentage of the dwelling protection. For example, if your policy limit was 10 percent, a $300,000 policy would cover a detached garage up to $30,000.
Just like it is important to take inventory of the belongings in your home, it's important to consider what you keep in your garage. If, for instance, there was a fire in your garage and it was a total loss, would that $30,000 cover the damage? If you keep only vehicles in the garage, and they are adequately insured, they would be covered under your auto insurance, and you could use the insurance funds to rebuild the garage. But if you have other things such as a tractor, ATVs or other valuables, you may want to consider whether you need additional coverage.
As with all other insurance matters, you have to decide what level of risk you are comfortable with. Some people in this situation know the policy won't cover everything, but they take the chance and know they will have to take a financial loss if something happens and the garage and contents are a total loss.
Others don't have to worry about having the money to replace valuable items, so they choose to increase their policy. Yes, it results in a slight premium increase, but for them, it is worth it for their peace of mind.
Speak to your independent insurance agent about your homeowners insurance and the limits set for garages and outbuildings on your policy. Together, you can make a decision about additional coverage that works for you.
We'll help you understand the details of your policy. Call Pro Player Insurance Group at (954) 316-4662 for more information on Fort Lauderdale home insurance.
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