insurance

What Homeowners Should Know About Coverage for Detached Structures

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Most homeowners focus on insuring their main house and forget about everything else on their property. That detached garage, storage shed, or workshop might represent thousands of dollars in value, but many people don’t realize how their insurance handles these structures. At Sound Choice Insurance Agency Inc in Lynnwood, WA, we regularly help homeowners understand what’s actually covered.

Standard Coverage for Detached Structures

The good news is that most homeowners’ insurance policies automatically include coverage for detached structures. This typically covers garages, sheds, fences, gazebos, and even dog houses. The standard coverage amount is usually 10% of your home’s coverage limit. For example, if your house is insured for $300,000, you’d have $30,000 in detached structure coverage.

However, this coverage comes with important limitations. The structure must be primarily used for residential purposes, not business. If you’re running a woodworking business out of your detached garage, that could complicate coverage. Additionally, structures used to house business property might not be covered under your standard policy.

When Additional Coverage Is Necessary

Sometimes, the standard 10% coverage isn’t enough. If you have an expensive detached garage with custom features or multiple outbuildings, you may need to increase your coverage limits. High-end pool houses, workshops with costly equipment, or large barns can easily exceed standard limits.

It’s also important to note that the contents inside detached structures are treated differently. Tools in the garage or lawn equipment in the shed fall under your personal property coverage, which has its own limits.

Evaluate Your Coverage Needs

Take a walk around your property and calculate the cost to rebuild your detached structures. Don’t forget to account for foundations, electrical work, and custom features.

Sound Choice Insurance Agency Inc. in Lynnwood, WA, can help you assess whether your current coverage matches your replacement costs. Contact us today to ensure your property is fully protected.

Should You File A Claim For Petty Theft?

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Commercial insurance in Lynnwood, WA, is designed to protect your business’s financial assets. Whether you are dealing with an injured employee or a theft incident, it can help cover losses. However, there are important factors to consider before filing a claim.

Coverage Limitations

Commercial insurance policies vary widely in their coverage. Property insurance often covers inventory, including the cost of replacing stolen items. However, some policies specifically exclude theft. It’s essential to consult with an agent at Sound Choice Insurance Agency Inc to confirm whether theft is a covered peril under your policy.

Many policies also exclude intentional acts committed by employers or employees. For example, if an employee steals from your business, your claim may be denied. While you can pursue legal action against the employee, the insurance policy may not provide coverage for such incidents.

Additionally, filing a claim for petty theft often requires a police report. Some insurance companies impose strict deadlines, such as requiring claims to be filed within 14 days of the incident.

Deductible Considerations

Most commercial insurance policies include a deductible, which is the amount you must pay before the insurance covers the remaining costs. For minor theft cases, filing a claim may not be financially worthwhile. For instance, if your deductible is $500 but the stolen merchandise is worth $250, filing a claim would result in a financial loss.

It’s also important to consider the potential impact on your monthly premium. Filing a claim may lead to an increase in your insurance rates. An agent at Sound Choice Insurance Agency Inc can help you evaluate the pros and cons of filing a claim, ensuring you make the best decision for your business.

Contact us today to discuss your commercial insurance needs. We proudly serve the Lynnwood, WA, area.

Does Homeowners Insurance Cover Personal Property?

Posted on by agentinsure

Homeowners insurance steps in to help reimburse you for damages or make repairs for various events, such as floods, hurricanes, or fires. Most people know that insurance in Lynnwood, WA will cover structural damage to property, but what about your personal property?

Personal Property Protection

Many insurance policies include personal property protection that covers your belongings. This can consist of belongings outside, such as patio furniture, children’s toys, or a trampoline. Some policies extend this coverage to belongings inside vehicles on the property. Always read the fine print to determine which belongings are covered. You can also ask a Sound Choice Insurance Agency Inc agent to clarify things.

Covered Events

Instead of focusing on which belongings are covered, it’s important to learn what events are covered. Covered events are specific events in which personal property protection will kick in and cover the cost of replacing your things. Many policies include this coverage for things beyond your control, such as natural disasters and fires. Some include theft, while others explicitly exclude theft.

Coverage Limits

Personal property protection does have limits. Many policies will allocate a certain percentage of the policy to reimburse you. You’ll have to pay out-of-pocket for anything that exceeds the amount the insurance company provides. Itemize valuable things in your house to make sure you have ample coverage in case something happens to your personal property.

Here at Sound Choice Insurance Agency Inc., our agents will work with you to determine how much coverage you need and ensure certain events are included. We’ll explain everything to you, ensuring you know how much coverage you have. Contact us today to learn more about personal property coverage. We’re currently serving the Lynnwood, WA area.