Residential Insurance

Residential Insurance: Homeowners and Renters 10 — Personal Liability This section of the homeowners policy will provide coverage in the event you or a resident of your household are legally responsible for injury to others. This coverage provides a defense and will pay damages, as the insurance company deems appropriate. There are some exceptions. The liability coverage will not protect you in all situations, such as an intentional act. All of the exclusions and specific language can be found in your policy. —Medical Payments to Others This coverage pays for reasonable medical expenses for persons accidentally injured on your property. For example, if a neighbor’s child is injured while playing in your home, the medical payments portion of your homeowners policy may pay for necessary medical expenses. Medical payments coverage does not apply to your injuries or injuries of those who reside in your household. It is not a substitute for health insurance. Business activities are also excluded. All of the exclusions and specific language can be found in your policy. ALE coverage pays the additional cost for you to maintain your normal standard of living by covering the increased living expenses incurred as a result of damage resulting from a covered loss. Typically items included in ALE coverage are extra food costs, increased housing costs, furniture rental, relocation and storage costs, telephone installation and extra transportation costs to and from school or work. In the event of a loss, it is important that you keep receipts for all additional living expenses in order to request reimbursement from the insurance company. FRV coverage pays the insured the fair rental value for the part of the residence rented to others, while uninhabitable as a result of a covered loss, less any expenses that do not continue while the premises is uninhabitable. Generally, policies will provide ALE or FRV benefits for a period of up to two weeks if the residence premises is under a mandatory evacuation order due to peril covered in the policy (i.e. wildfire).