Explanation of Coverage from a USAA Homeowner’s Insurance Policy

Finding a trustworthy insurance company is crucial when purchasing a home. Some homeowner insurance policies fit within a budget but do not provide the coverage that many customers need, or the coverage fits the need but is too expensive.

The following information is taken from an insurance policy with USAA which shows to be affordable while providing exceptional coverage.

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“Dwelling Coverage” – A dwelling is the home purchased by the insurer. USAA will cover the house itself and any structures attached to the dwelling if damaged. Examples would be an attached shed or parking canopy/carport. In addition, any materials and supplies located on or next to the house used to construct, repair, or alter the residence, permanently installed carpeting and permanently installed window coverings. This USAA policy does not cover land on which the home is located.

“Other Structures Coverage” – Pertains to structures that are set apart from the house by space, sidewalks, fences, and driveways including those that are connected to the residence by only a utility line, fence, or similar connection. This policy does not cover land or the land where other structures are located. USAA will not cover other structures that are away from the insured’s residence; such as something that would be capable of being used for a business or a dwelling.

“Personal Property Coverage” – This coverage is also known as “Tangible Personal Property” and covers items such as jewelry, laptop computers, watercraft, and furs, just to name a few. These items are covered if damaged, lost, or stolen regardless of where it is in the world. It also covers personal property of others that may be visiting the insured’s home. This policy does not insure the loss or death of animals, birds, or fish regardless if they are in the insured’s residence or not. Air and hovercraft are not covered under this policy nor are business records, data, recordings, and images or photographs. The amount of insurance is limited to 10% or $1000 whichever is greater. The Personal Property Coverage offers a “special amount of insurance” which they will pay for each loss of an item as follows: $200 for smart cards, stored value cards, gift certificates including electronic gift certificates, coins, medals, and money. $1000 for evidence of debt, manuscripts, passports and tickets, securities, accounts, notes other than bank notes, and deeds. These limits include the costs to replace or restore information from the lost or damaged material and the research involved and will not increase the Personal Property Protection amount of insurance.

“Loss of Use/Additional Living Expenses” – USAA will protect and aid the insured if their property is inhabitable due to damage. It covers reasonable and necessary increase in living expenses so the insured can maintain their normal standard of living. Payment will be made for the shortest amount of time that it takes to have the necessary repairs done at/to the residence. If the insured decides to permanently relocate payment will be made for the shortest amount of time that it takes to settle in. Either circumstance is not to exceed 12 months.

“Medical Payments” – Will be made for reasonable necessary medical expenses such as x-rays, surgery, hospitalization, dental, prosthetic devices, professional nursing, and ambulance and funeral services. These payments will be made within three years of the accident to the person that was injured involving the insured whether on or off of the insured’s residence/property. Medical expense coverage does not apply to the insured or any person that lives with the insured in their residence.

“Personal Liability” – USAA will pay up to their limit of liability for damages the insured is legally liable. They will provide a defense at their own expense by a counsel of their choice; even if the suit is false or groundless. Under this area of the policy, USAA will not pay for punitive damages, fines, or penalties. They may investigate or settle any claim or suit they decide is appropriate. This coverage will not provide any defense for the insured in regards to criminal prosecution or proceedings.

USAA is known for its loyalty to their customers and has been rated one of Business Week’s top 2 “Customer Service Champs.” USAA has been serving for 86 years and goes the extra mile to make sure their customers are satisfied with their real estate products and services.