Suggestions for making a Virginia Beach Real Estate inventory include:

• Organize it by room.

• Describe each item, including make and model, and where it was bought. Record the serial number, if the item has one.

• Attach sales receipts, purchase contracts, and appraisals to your list.

• For clothes, count each type of item, such as pants, shoes, shirts, coats, etc. Particularly note those that are valuable.

• Supplement your written list with photographs. Make sure you label the photos. *If you have a video camera, videotape each room. You can also add a narration as you tape.

• Don’t forget items that are in drawers, closets, attic, and basement.

• Use your computer. Make your list, scan in receipts, photos, and other papers. Keep these in a fireproof box. Make a copy of your inventory and photos and store them away from the house.

• Add valuable new items (such as a new entertainment system) to the inventory when you purchase them. Review and revise the list annually.

What is generally covered?
Under the HO-3 policy type (the most popular), damage caused by perils and hazards such as fire, lightning, smoke, windstorm (in certain parts of the country), hail, vandalism, falling objects, theft, weight of snow or ice, vehicle striking the structure, building collapse, water damage from bursting pipes, and structural damage from an electrical surge are covered.

What is usually excluded?
Under the same HO-3 policy, damage not covered includes that caused by an earthquake, floods, windstorms (in certain parts of the country), war, pets, birds, rodents, or insects, sewer backup, pollution. Damage done by you or that which is the result of normal wear and tear is also excluded.

Do not despair, however. You can add riders or special endorsements to your policy to cover some of the above-mentioned exclusions and/or to increase the coverage for items whose value exceeds the basic limits. Some of these endorsements can include: wind, sewer backup, jewelry, fine art, furs, theft coverage protection, etc.

Valuable items such as jewelry, art work, and collectibles should be appraised so that you will have adequate coverage. Another thing to consider is adding a rider to insure your home office if you do not have a separate business policy.

So you have purchased adequate insurance for your Virginia Beach real estate, have inventoried your belongings, and have put that list in a protected place–and you’re feeling secure and confident. But what if life throws you a curve and your property is stolen or damaged? Then what? Look for Part IV in this series for help in filing and/or settling a claim and for tips to prevent losses at all.

An Insurance Guide For Your Virginia Beach Real Estate – Part I

Types of homeowners insurance:

• HO-1 is very basic coverage, insuring against fire or lightening damage

• HO-2, called “broad coverage,” also covers loss of or damage to property resulting from windstorm or hail, theft, explosion, smoke damage from vehicles and aircraft, glass breakage, removal of property endangered by covered peril such as fire, vandalism, malicious mischief, and riot or civil commotion. HO-2 also covers building collapse, freezing of or accidental discharge of water or steam from within plumbing, heating, or air-conditioning, falling objects, weight of snow, ice, or sleet, and rupture or bursting of steam or hot water heating system

• HO-3, called the “special” form, insures your home and detached structures against loss or damage from any peril except for those specifically excluded in the policy. This is the policy most homeowners purchase. It is important for you to read your policy carefully to see what is excluded—you may want to cover exclusions with special endorsements.
  

• HO-4 is a tenant’s policy and insures your household contents and personal belongings against the perils of the HO-2 policy. It also covers additional living expenses if needed, medical payments, and also liability protection.

• HO-6 covers a condominium unit-owner who wishes to insure items not insured by the association policy, as well as the personal property inside the unit and personal liability protection.

• HO-8 is the “older home” policy. Having an older home may preclude your being able to buy a replacement policy; you may have to buy a modified replacement policy instead. This means that instead of replacing such older home materials as plaster walls for example, the policy will pay for standard building materials and processes in use now.

Some states designate their forms differently, using such titles as HO-A, HO-B, etc., but the coverage is generally the same.

Types of replacement policies:

• Actual cash value policies pay to replace your Virginia Beach real estate holding and possessions, minus depreciation, up to the limit

• Replacement cost policies pay the actual cost of rebuilding or repairing your home and replacing your possessions up to the policy limit. No deduction for depreciation.

• Guaranteed replacement cost policies pay whatever it costs to rebuild your home as it was before the damage occurred even if it exceeds the policy limit.

• Extended replacement cost policies pay a specified percentage over the policy limit to rebuild your home. Usual percentages are 20%-25.

How much insurance do you need for your Virginia Beach real estate holdings? The Insurance Information Institute suggests that you first need enough to cover the cost of rebuilding your house at today’s construction cost. Note: this does not include the cost of the land. Some lenders require only that you have enough to cover the cost of your mortgage, but that figure may be inadequate to cover your home’s value. In addition to the value of the structure itself, you will also need coverage for your possessions, living expenses if you have to live somewhere else for a period of time, and any liability you may incur. Your insurance agent can advise you as to the type and amount of insurance that would best suit your needs.

How To File An Insurance Claim On Your Virginia Beach Home

1.  If a crime has been committed, report it to the police. You should get a copy of the police report.

2.  Contact your insurance agent or company immediately.

3. If necessary, try to protect your property from further damage. Save your receipts.

4. Don’t dispose of damaged items until the adjuster has seen them.

5. Prepare a list of damaged items. Take pictures of the damage. (Now aren’t you glad you made an inventory list/video?)

6. Get the appropriate claim forms and fill them out completely. Return them within the time limit.

If you encounter problems (such as denial or inaction within a reasonable period of time) settling your insurance claim for your Virginia Beach home, you can follow these steps:

1. Make sure you can support your case with documentation. Be prepared to send copies with any letters. Keep the original documents, such as estimates and receipts and only send copies. Also keep copies of all letters.

2. Be prepared to document each phone call. Note the date and time of each conversation and name of each person you talked to.

3. Review your policy to see if it contains information on resolving disputes or appealing a claim denial.

4. Talk with your agent or company representative. If they can’t solve the problem then get the name and phone number of the company’s claims manager.

5. Send a letter explaining your problem including copies of supporting documentation to the company claims manager.

6. If your problem still isn’t satisfactorily resolved, then contact your state insurance department and file a complaint. 

7. As a last resort, you may want to consult an attorney. Make sure you choose an attorney that specializes in homeowners insurance. Be prepared to pay a consultation fee and get the fee structure in writing before pursuing the case.

To reduce the chances of having to file a claim at all, use common sense when it comes to installing and maintaining smoke, carbon monoxide, and motion detectors, cleaning chimneys and wood stoves on a regular basis, and keeping a dry chemical fire extinguisher in the kitchen. Rely on deadbolt locks and an alarm system for protection against theft and use space heaters with caution. Your policy may contain clauses or conditions that specify other reasons that could void portions or all of your coverage. Examples include failure to report claims promptly, failure to cooperate fully with the insurance company, and failure to protect the property from further loss. Another example would be using your home for a business (perhaps even providing informal but regular childcare for three or four children not your own) not specifically included in the policy. Make sure you read your policy carefully to determine what the conditions are.

An insurance company may also cancel or refuse to renew your coverage or raise your premiums on your Virginia Beach home if for any reason the property no longer meets their underwriting criteria. For example, perhaps the building has grown too old or the zoning has changed, or you have in some way increased your liability exposure trampoline to the yard). Filing too many claims, in many cases, may also lead to cancellation.

And a word to the wise about keeping your policy in effect… An insurance company can cancel your policy for non-payment of premiums, fraud, or misrepresentation. Your policy may contain clauses or conditions that specify other reasons that could void portions or all of your coverage. Examples include failure to report claims promptly, failure to cooperate fully with the insurance company, and failure to protect the property from further loss. Another example would be using your home for a business (perhaps even providing informal but regular childcare for three or four children not your own) not specifically included in the policy. Make sure you read your policy carefully to determine what the conditions are.

So there you have it–the ABC’s of homeowners insurance, designed to keep you an informed, proactive, and responsible Virginia Beach home owner.

Get the value of your Virginia Beach home.

Also read:
An Insurance Guide for your Virginia Beach Real Estate – Part I
An Insurance Guide for your Virginia Beach Real Estate, Part II
An Insurance Guide for Your Virginia Beach Real Estate, Part III

Types of homeowners insurance:

HO-1 is very basic coverage, insuring against fire or lightening damage

HO-2, called “broad coverage,” also covers loss of or damage to property resulting from windstorm or hail, theft, explosion, smoke damage from vehicles and aircraft, glass breakage, removal of property endangered by covered peril such as fire, vandalism, malicious mischief, and riot or civil commotion. HO-2 also covers building collapse, freezing of or accidental discharge of water or steam from within plumbing, heating, or air-conditioning, falling objects, weight of snow, ice, or sleet, and rupture or bursting of steam or hot water heating system

HO-3, called the “special” form, insures your home and detached structures against loss or damage from any peril except for those specifically excluded in the policy. This is the policy most homeowners purchase. It is important for you to read your policy carefully to see what is excluded—you may want to cover exclusions with special endorsements.

HO-4 is a tenant’s policy and insures your household contents and personal belongings against the perils of the HO-2 policy. It also covers additional living expenses if needed, medical payments, and also liability protection.

HO-6 covers a condominium unit-owner who wishes to insure items not insured by the association policy, as well as the personal property inside the unit and personal liability protection.

HO-8 is the “older home” policy. Having an older home may preclude your being able to buy a replacement policy; you may have to buy a modified replacement policy instead. This means that instead of replacing such older home materials as plaster walls for example, the policy will pay for standard building materials and processes in use now.

Some states designate their forms differently, using such titles as HO-A, HO-B, etc., but the coverage is generally the same.

Types of replacement policies:

Actual cash value policies pay to replace your Virginia Beach real estate holding and possessions, minus depreciation, up to the limit

Replacement cost policies pay the actual cost of rebuilding or repairing your home and replacing your possessions up to the policy limit. No deduction for depreciation.

Guaranteed replacement cost policies pay whatever it costs to rebuild your home as it was before the damage occurred even if it exceeds the policy limit.

Extended replacement cost policies pay a specified percentage over the policy limit to rebuild your home. Usual percentages are 20%-25.

How much insurance do you need for your Virginia Beach real estate holdings? The Insurance Information Institute suggests that you first need enough to cover the cost of rebuilding your house at today’s construction cost. Note: this does not include the cost of the land. Some lenders require only that you have enough to cover the cost of your mortgage, but that figure may be inadequate to cover your home’s value. In addition to the value of the structure itself, you will also need coverage for your possessions, living expenses if you have to live somewhere else for a period of time, and any liability you may incur. Your insurance agent can advise you as to the type and amount of insurance that would best suit your needs.

Learn more about owning Virginia Beach real estate.

What’s your Virginia Beach real estate worth?