Buenas Yan Håfa Adai PDN readers!

Sandy and I discussed insurance needs for renters and homeowners who may want policies protecting items of importance and high value. We continue in this month’s column to provide you, our readers, with a better sense of insurance for the home.

Does the size of the home matter?

In a homeowner’s policy, the physical dwelling is insured. Therefore, the size of the home/lot is an essential factor in establishing the total value of the home. For contents insurance, however, the dwelling size is not a consideration when valuing personal property.

Who determines the value of the contents?

The homeowner, renter or business owner is responsible for determining the value of their personal property. An appraisal report can also be used and requested to verify the values.

What are the requirements for renters insurance?

A completed application scheduled list of personal property with estimated values and photos is required. In addition, a vicinity map and description of the residential dwelling are also necessary.

Are there minimum amounts of coverage?

Although minimums differ for insurers, $5,000 is the standard minimum.

Can a wooden structure be covered?

In most, if not all, cases, a Guam-licensed insurer would not offer insurance coverage for a wooden structure as they are prone to heavy or total damage from fires, typhoons, earthquakes and floods.

As you can see, buying insurance for your most expensive investment has many areas of consideration. If you own your home, you will most likely have an insurance policy. As the years go by and your property’s value goes up and down, you may want to meet with an insurance advisor to ensure that your home insurance coverages are sufficient. If you are thinking of buying a home, it’s a good idea to get quotations on home coverage policies, as your bank lender will require it. We hope that this information has been beneficial to you. We want to send a special shout-out to Asako Takagi from Takagi & Associates insurance for all of her help.

Till next month,

Home-Sweet-Home

Sandy and Duane

Sandy Yow and Duane Pahl are associated brokers with Today’s Realty. They have decades of experience with all types of real estate issues on Guam and internationally.