The building ordinance clause on a homeowner’s policy is a stipulation that states the amount a policy covers for changes in the building code that may have occurred from the date your home was constructed, until the date your home suffered a loss. In the event of a major loss, an insurance company will rebuild your home how it was in the year it was built. However, the building department in each jurisdiction will likely require all new construction to comply with current building code requirements which become more stringent (and expensive) to comply with from year to year. As an example, many original homes built prior to 1930 have small foundations that are not attached to the structure, while modern building codes require significantly upgraded foundations that are permanently attached. In areas such as Folsom,
Wednesday, May 2, 2007
What Is The Building Ordinance Clause On My Homeowners Insurance Policy?
Monday, April 30, 2007
What Liability Limits Do I Need On My Auto Insurance?
Liability insurance is intended to compensate others for damages you cause to them. The amount of coverage you need should be at least equal to the net value of the assets you own. Let me explain. In the event of a judgment against you, the money will come from one of three places. The first source is your insurance and if you have enough, then the damage stops here and both parties go their separate ways. If the judgment exceeds your insurance limits, then your personal assets, with some exclusions, may be used to settle the judgment. If your assets and insurance combined are insufficient, then a portion of your wages may be garnished until the debt is settled. In general, 25% of your annual income over a 10 year time period is a safe rule of thumb when calculating wages in danger of garnishment. With this in mind, most insured's who own a home in California should carry at the minimum 250k per person and 500k per accident in liability coverage on each auto they own. Homeowners with substantial assets will need to consider adding an umbrella policy in addition to these limits.
Subscribe to:
Posts (Atom)