LGM Insurance

Definition of Named Peril vs. Open Peril:
The difference with a named peril policy is you only have coverage for losses that are specifically listed (named) in the policy, however, with an open peril policy you are covered for all types of losses unless they are specifically excluded in the policy. Open Peril is the broadest type of homeowner’s policy available.

Important Exclusions and Limitations:
A few of the principal exclusions are flood and earthquake coverage. Damage arising from Backup of Sewers and Drains, Fungi and Mold, and Rebuilding to Code is often restricted or excluded by your policy. In addition, certain specific personal property such as jewelry, furs, coins, silver, etc. are limited in the event they are stolen or misplaced. You may add or purchase a policy separately for these coverages.

Replacement Cost Coverage:
Replacement cost protection is afforded for the house and contents. For your home, this means the company will pay whatever it costs to rebuild your home, even if the cost exceeds the amount of insurance. Content losses are paid without a deduction for depreciation, upon replacement, up to the policy limit stated. If needed, you may increase your policy limit for your personal property.

Vacant Homes and Homes Under Renovation:
Some coverage may be suspended if your insurance company is not properly notified when a house is vacant, unoccupied or undergoing renovations. You are required to notify your insurance company immediately under any of these circumstances. It is also imperative that you work with a contractor that has adequate liability and worker’s compensation insurance, a certificate of insurance should be provided.