Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: SATURDAY, May 5, 1990                   TAG: 9005080083
SECTION: AMERICAN HOME WEEK                    PAGE: AH17   EDITION: METRO 
SOURCE: KIM SUNDERLAND
DATELINE:                                 LENGTH: Medium

HOMEWONER'S INSURANCE-HOW MUCH IS ENOUGH?

Virginia Tech housing extension specialists Kathleen R. Parrott and Elaine D. Scott, along with a few colleagues, have put together a publication on household insurance designed to help homeowners figure how much insurance they need and exactly what kind they should acquire.

Homeowner's insurance is a package of benefits that protects the owner against various dangers.

Homeowners buy insurance based upon the estimated value of the dwelling, according to Parrott and Scott. It differs for renters or condominium owners, who purchase insurance based on the value of their personal property. An entire homeowner's package might include coverage for the structure, landscaping, loss of use, personal property, cash losses, liability and medical payments.

The types of homeowner policies vary and "insurance companies have standardized their policies so that consumers can compare coverage and cost of different ones."

In varying degrees, these standard policies cover 18 listed perils:

1. fire

2. loss of property removed from premises endangered by fire or other perils

3. windstorm, hail

4. explosion

5. riots

6. damage by aircraft

7. damage by vehicles owned or operated by people not covered by homeowner's policy

8. smoke

9. vandalism

10. theft

11. glass breakage

12. falling objects

13. weight of ice, snow, sleet

14. collapse of building

15. leakage or overflow of water or steam from a plumbing, heating or air-conditioning system

16. bursting, cracking, burning or bulging of steam or hot water heating system, or of appliances for heating water

17. freezing of plumbing, heating and air-conditioning systems and home appliances

18. damage to electrical appliances and devices, with some exclusions, from short circuits or other accidentally generated currents. Basic homeowner insurance is called an HO-1 policy and protects property from the first 11 perils listed. An HO-2 policy is broad coverage and protects against all 18 perils.

For more information on homeowner's insurance, contact any insurance agent dealing in home insurance, a lawyer or a home extension specialist in your area.

This information is from "Household Insurance--How Much Do I Need?," a publication supplied by the Virginia Cooperative Extension Service at Virginia Tech. Call Kathleen R. Parrot, extension housing specialist, at 231-4783, for details.