What You May Not Know About Homeowner’s Insurance

Homeowners insurance is an important way to protect one of the largest investments you own. In addition to providing assistance should you need to repair something in your home, it can also protect your financial future. Knowing what to expect when seeking out homeowner’s insurance is an important step in ensuring you are covered if the unplanned happens.

 

Policy types

While homeowner’s insurance is standard in most areas of the United States, there are special considerations depending upon where you live and your specific requirements.

 

• Perils coverage is an important insurance rider that protects against many types of disasters including theft, tornadoes, and fires. If you have named perils coverage, it will define the specific disasters that are covered. Open perils coverage protects both your home structure and personal property, while condo or co-op owners should select a policy that covers the structural parts of the building that they own as well as their belongings.
•  Cash value coverage will pay for or repair property and possessions based on the policy limits minus a deduction for depreciation.
•  Replacement cost coverage will pay to repair or replace your property or possessions based on the policy limits without a depreciation deduction.
•  Guaranteed replacement cost coverage gives homeowners the highest protection on their belongings because it replaces your home to its pre-disaster state even if it costs more than the policy limit.

 

Type of damage

It is important to know that not every type of damage will be covered by your homeowner’s insurance. For example, some policies will only cover something sudden or accidental but will not cover incidents that occur over several months such as water damage from a leaky faucet. Additionally, certain natural disasters might also be exempt if you do not have an additional rider. These might include earthquakes and floods.

 

Personal belonging coverage

It is important to ask if there are any limits on the amount of coverage for your personal belongings. Items of high value may only be covered for a certain amount. Additionally, possessions that are damaged or stolen while you away from your home also may not be covered.

 

At Alaska Management Group and Bonanza Realty, we provide our clients with guidance to make the right decisions about everything related to home buying and home management. Contact our team to learn more about our management services. 

Gain Peace of Mind by Having the Right Condo Insurance

Imagine coming home from work and finding your condo’s front door broken and your new television missing. Once you recover from the shock, you’ll probably think to call your condominium association about replacing the door and lock, but what about your personal property and any damage inside the condo? Typically, the condo association’s policy will cover external areas and, depending on the association, may help with the interior damage. Personal property, however, must be insured by the condo owner. 

Some condominium associations offer coverage  referred to as “all-in”, which covers not only the exterior of the unit, but also some of the things inside the condo, such as carpeting, appliances, and fixtures. Other associations offer coverage for only the exterior, which means that the condo owner is responsible for essentially everything within the unit. It’s critical to know what type of insurance coverage your condo association offers before you speak with your insurance agent. 

Not only will condo owners’ insurance cover loss or damage to your property, it should also cover damages in the event that someone is injured in your condominium. This would include someone slipping and injuring himself on a wet floor, for example, including resulting medical bills and possible legal actions. 

When purchasing a condo policy, first determine the value of your belongings. The best place to start is to make an itemized list of those belongings that would need to be replaced. Keeping serial numbers and photos of items will make things much easier if you ever need to make a claim. Bear in mind that most policies will pay “Actual Cash Value” (or ACV) for your belongings, which means that depreciation is taken into consideration. Replacement cost coverage is also available, typically at a somewhat higher cost. If you have items of very high value, like jewelry or artwork, you may need to purchase additional coverage. Insurance will cover loss or damage to your property for some weather events, with the exception of natural disasters like earthquakes, floods and landslides. If your area is in a zone that is prone to these events, you may need to purchase extra coverage.

Condo ownership is different from traditional home ownership in many ways, including insurance requirements. Your insurance agent can help you select the right policy and give you the peace of mind so that you can enjoy your condo. 

For over 35 years, Alaska Management Group has been meeting the property management needs of associations and planned communities throughout Alaska, including Anchorage, Palmer, Eagle River, Wasilla, and more. To learn more about us, please visit http://www.bonanzarealty.net/ or call (907) 333-1244. 

The Neon Pink House on the Block: The Benefits of Homeowners’ Associations (HOAs) vs. Restrictions

“Why can’t I raise goats in my backyard?” “Turn the rooms of my home into an inn?” “Paint neon pink murals on my siding?” Homeowners’ associations (HOAs) can sometimes be viewed by the individual homeowner as stifling expression and creativity. In reality, the main goal of an HOA is to maximize property values and create a positive neighborhood environment based upon shared understanding.

An HOA is a community association that serves the greater interests of a neighborhood and its residents. As such, having an HOA can give a community more political advocacy and power, as well as be a collective force for maintaining stability in resale value, community, and structural integrity. Alaska Management Group has been working with and managing homeowners’ associations in the Anchorage area for decades, and as we say in our mission statement, the goal is to “ensure a safe and comfortable lifestyle while maintaining the value of the community for all residents.”

HOAs will have agreed-upon CC&R’s (covenants, conditions, and restrictions) to meet their goal of maintaining home values, neighborhood amenities, and property stability among their residents. These will usually include:

- Fees and membership dues.

- Ordinances and rules, such as architectural, usage, parking, and noise restrictions.
- Responsibilities of the homeowner and the association.

Although HOA’s will most likely put an added layer of restrictions on the individual homeowner, on top of the local government’s zoning and neighborhood ordinances, an HOA serves the collective interests of its community. HOAs can be a powerful voice for the greater interests of their residents, and allow homeowners to have access to amenities as a group that they would not be able to afford individually. Many homeowners appreciate the added stability and the financial protection of assets that an HOA provides. Finally, HOAs can create an added sense of community and neighborhood identity. For more benefits of an HOA, visit here.   

Alaska Management Group is the longest-running association management company serving communities in Anchorage, as well as surrounding cities such as Palmer, Wasilla, and Eagle River. We provide exceptional management services and association-specific websites that facilitate shared information, communication, and access between residents, Board members, and our team. We provide both full service and financial management as well as Board of Directors consultation services. Let us know if we can assist you in maintaining the value and comfort of your home and association by completing our management request form.