Homeowners Renewal/Coverage Increase

HOMEOWNERS RENEWAL/COVERAGE INCREASE

Dear (Customer Name),

Here is the renewal of your homeowners policy. As you can see, your coverage is being provided by the (Your Agency Name) and contains the same terms and conditions as last year's policy.

The only difference I would like to point out is that we have automatically increased the coverage on your dwelling. We do this because we feel it's important to work closely with you to insure that your values are up-to-date.

This can be a bit tricky because the important figure to watch in homeowners insurance is REPLACEMENT COST, not MARKET VALUE.

Sound confusing? The best way to think of it is this:

Replacement Cost = What You Would Have To Pay To Rebuild Your Home Today

Market Value = What You Would Get Today If You Were To Sell Your Home

(Your Company Name) researches building costs in your area to arrive at the appropriate increase. If for any reason you think we should modify this (up or down), please let me know.

From time to time, we tend to get similar questions from our customers about exactly what is or is not covered in the homeowners policy. While we probably haven't answered everyone's questions, we hope that the enclosed sheet called Homeowners Tips will cover the majority of the things you would like to know about.

If anything else comes to mind, please feel free to call on our number (Your Phone Number).

As always, we thank you for doing business with us, and we certainly welcome the opportunity to assist you in all of your insurance needs.

Regards,

Many of our customers want to know what exactly is and is not covered under a homeowners policy. Since we recognize that it can be a laborious process to wade through all the fine print in your policy, we thought you might appreciate a synopsis of the questions we are most frequently asked.

If we've missed one of your concerns, please give us a call and we'd be glad to talk to you about it.

1. WHAT ARE SOME OF THE ITEMS IN MY HOME THAT ARE COVERED FOR THE INSURED PERILS, BUT ONLY FOR A LIMITED AMOUNT?

• Silverware...........................................................Limited to $2,500.00
• Jewelry or Furs....................................................Limited to $1,000.00
• Guns....................................................................Limited to $2,000.00
• Money.................................................................Limited to $ 200.00
• Securities.............................................................Limited to $1,000.00
• Watercraft (On Premises) ...................................Limited to $1,000.00
• Trailers (On Premises)........................................Limited to $1,000.00
• Personal Property At A Vacation........................Limited to 10% of The Or Second Home Coverage C Amount On Your Policy

2. WHAT ARE SOME OF MY THINGS THAT ARE COVERED, BUT ONLY UNDER VERY LIMITED CIRCUMSTANCES?

• Swimming Pools, Piers, Wharves, Docks, Fences, and Retaining Walls
• Damage Caused By A Power Interruption
• Trees, Shrubs, and Plants
• Fine Arts
• Credit Cards
• Business Property

3. WHAT ARE SUCH THINGS THAT MY POLICY DOES NOT COVER AT ALL?

• Flood
• Earthquake
• Liability for Business Pursuits
• Injuries that fall under the Workers' Compensation Act
• Personal Property at a Rental Property
• Unregistered Vehicles (Such as Mopeds and Snowmobiles)

• Normal Wear and Tear
• Breakage
• Deterioration
• Damage Caused by Insects, Domestic Animals, Birds, Vermin and Rodents

4. WHAT ABOUT RECREATIONAL VEHICLES AND WATERCRAFT?

• Golf Carts Covered While You're Golfing
• There Is Liability Coverage if the Watercraft is Less than 26 Feet and 25 Horsepower

5. WHAT ARE SOME OF THE THINGS THAT MIGHT QUALIFY ME FOR A CREDIT UNDER MY HOMEOWNERS POLICY?

• A Smoke Alarm
• A Smoke Detector
• A Burglar Alarm
• A Larger Deductible

Please call us if you have any further questions or would like us to give you a price quote on additional coverage.