Homeowner's insurance policies all have stated amounts of coverage. So, what does that mean for your manufactured or modular home insurance policy?
The coverage limit of your homeowner's insurance policy is the maximum amount that your policy will pay for on a covered loss, and this is stated in your policy.
What this means for a homeowner is that once the coverage limit has been paid, homeowners must cover the remaining cost of repairing or replacing the covered items, if any.
Varying Special Limits in Mobile Home Insurance Policies
There are also selected coverages within your specific policy that have special limits. These limits outline the maximum amount that could be paid on a certain category of items. This could be either a percentage amount of the dwelling coverage or a specified dollar amount.
Special Limits Within Limits of Coverage
So how do special limits and limits of coverage go together? Let's look at an example.
Personal property includes the contents and household goods, which also includes special limited items. Your unique policy will outline the limit of coverage for all personal property, but it will also have special limits for different items that fall under personal property.
For instance, HomeFirst manufactured homeowner's insurance policies that include personal effects protection have a coverage limit stated in the policy. Maybe your overall personal effects coverage is $8,000.
This personal effects policy will also include special limits on selected categories of items. Those special limit items are stated in your policy. An example might be a special limit of $1,000 on jewelry. You could have a multitude of personal items stolen from your home one night.
In this example, the total coverage of your personal effects will have a $8,000 limit, which will be the limit of coverage on all items that were stolen from your home. However, the special limit on stolen jewelry means that the limit of coverage on jewelry, regardless of the total amount of jewelry stolen, will be $1,000.
Special Limits of Coverage Noted in Policies
At HomeFirst, special limits may apply to some of the following types of coverage:
Personal effects protection (jewelry, guns, collectibles, antiques, computers, tools, furs, art, etc.)
Additional living expenses
Water backup of sewers
Food spoilage due to covered power failure
Fire department service
It's important to remember that some parts of your policy may have different types of coverage and limits.
Deductibles and Special Limits
You can't forget that homeowner's insurance policies have deductibles. It's important to note that your policy deductible could still apply to coverages with special limits. Different covered items with special limits have varied deductibles, and some items with special limits do not have a deductible.
Coverages at HomeFirst that have special limits but usually do not have a deductible include, but may not be limited to the following:
Fire department service
Your unique deductibles will be stated in your policy and can vary depending on the type of loss, the coverage, and special limits in your policy. If you have any questions about how your deductible applies to items that do have special limits, a HomeFirst representative will be happy to walk through your unique policy terms with you.
If you want to know more about our mobile home insurance coverage options, or if you have specific questions about your personal HomeFirst insurance policy, call a friendly HomeFirst representative today to ask about the amount of coverage available to you.