If your insurance agent did not invest any time in explaining these coverage scenarios to you, other than “read your policy” why is he/she your insurance agent?

Insurance is no mere commodity like a loaf of bread.  Insurance is a complex contract between you and your insurance company and if you violate a condition of your contract the insurance company may very well refuse to pay your claim. 

The most obvious reason why insurance companies can refuse to pay claims is when you are committing insurance fraud by turning in a claim that is based on deception.

Do you know the 230 additional reasons  why your insurance company can legally refuse to pay your claim?

Notice four additional reasons why your insurance company may refuse to pay a claim:

A son or daughter no longer is a member of your household but remains on your car insurance policy.

You use your vehicle to deliver pizzas.

You conceal information from your insurance company.

You give permission for someone to drive your vehicle whom has a suspended driver’s license.

There are 225 other reasons why your insurance company might refuse to pay your claim and it’s not because they are trying to cheat you.  If your claim was turned down it’s because you violated the terms and conditions of your policy.

As I have emphasized in many articles on this web site.  There are many restrictions of coverage on your Cincinnati car and home insurance policies that some unsuspecting insurance buyers may not be aware of until a claim happens and the insurance company doesn’t pay.

If you do not take time to read and understand your insurance policy or if your agent does not take the time to explain the 231 reasons why your insurance company can refuse to pay claims, perhaps you have the wrong insurance agent taking care of your insurance?

Doesn’t it make more sense to purchase your insurance from an agency that takes time to explain the coverage gaps and pitfalls of your insurance policy?

While it is true that no agency or individual agent is perfect, we firmly believe that educating our Cincinnati clients is more important than a cheap insurance price with no advice.™

We are available at any time to discuss individual coverage needs or restrictions of coverage with existing clients of Pathway Insurance or if you are not an existing client of Pathway Insurance why not take the time to consider allowing our local Cincinnati-based insurance agency to care for your insurance needs? 

Click Here to start that process. Or feel free to contact me directly by calling 513-662-7000 or sending a quick email to jack@pathwayinsurance.net

If you need a rate quote for your Cincinnati rental properties Click here or feel free to contact me directly by calling 513-662-7000 or sending a quick email to jack@pathwayinsurance.net

We do not cover loss resulting directly or indirectly by any of the following under any Section I – Property Protection coverages. Such loss is excluded regardless of any other cause or event contributing concurrently or in any sequence to the loss.

1. Enforcement of any ordinance or law regulating the construction, repair or demolition of a building or other structure, unless specifically provided under this policy. We do cover loss caused by actions of civil authorities to prevent the spread of a fire caused by a Peril We Insure Against.

2. Earthquake or other earth movement including loss caused by, contributed to or aggravated by landslide, mine subsidence, mudflow, earth sinking, rising or shifting.

 3. Water damage, meaning:

a. flood, surface water, waves, tidal water or overflow of a body of water. We do not cover spray from any of these, whether or not driven by wind;

b. water or water-borne material which backs up through sewers or drains or which overflows or is discharged from a sump, sump pump or related equipment; or

c. water or water-borne material below the surface of the ground. This includes water which exerts pressure on or flows, seeps or leaks through any part of a building or other structure, sidewalk, driveway, foundation or swimming pool; caused by or resulting from human or animal forces or any act of nature.

We do cover direct loss that follows, caused by fire or explosion.

4. Failure or interruption of power or other utility service which occurs away from the insured premises. We will pay for loss caused solely by a Peril We Insure Against that ensues at the insured premises.

5. Neglect of an insured to use all reasonable means to protect covered property at and after the time of loss, or when property is endangered by a Peril We Insured Against under Section I – Property Protection.

6. War (declared or undeclared), civil war, insurrection, rebellion, revolution, warlike act by a military force or military personnel, destruction or seizure or use for a military purpose, and including any consequence of any of these. Discharge of a nuclear weapon will be deemed a warlike act even if accidental.

7. Nuclear action, meaning nuclear reaction, radiation, radioactive contamination or discharge of a nuclear weapon even if accidental, or any consequence of any of these. Loss caused by nuclear action is not considered loss by perils of Fire or Explosion. Direct loss by fire resulting from nuclear action is covered.

8. Intentional acts, meaning loss resulting from an action by or at the direction of any insured, committed with the intent to cause a loss, or where the results of such action are reasonably foreseeable and cause a loss. Intentional acts include criminal acts. In the event of such loss, no insured is entitled to coverage, even an insured who did not commit or conspire to commit the act causing the loss.

9. a. Any actual or alleged failure, malfunction or inadequacy of:

(1) any of the following, whether belonging to any insured or to others;

(a) computer hardware, including microprocessors;

(b) computer application software;

(c) computer operating systems and related software;

(d) computer networks;

(e) microprocessors (computer chips) not part of any computer system;

(f) any other computerized or electronic equipment or components; or

(2) any other products, and any services, data or functions that directly or indirectly use or rely upon, in any manner, any of the items listed in 9. a. (1) (a) through 9. a. (1) (f) of this exclusion:

Due to the inability to correctly recognize, process, distinguish, interpret or accept one or more dates or times.

b. Any advice, consultation, design, evaluation, inspection, installation, maintenance, repair, replacement or supervision provided or done by you or for you to determine, rectify or test for, any potential or actual problems described in 9. a. (1) (a) through (f), and 9. a. (2) of this exclusion.

If an excluded cause of loss as described in 9. a. (1) (a) through (f), and 9. a. (2) of this exclusion results in a Peril We Insure Against we will pay only for the loss or damage caused by the described peril.

We will not pay for repair, replacement or modification of any items, described in 9. a (1) (a) through (f), and 9. a. (2) of this exclusion, to correct any deficiencies or change any features.

10. Fungi, wet or dry rot, or bacteria.

11. Damage to or loss of use of property resulting from the entire process of a volcanic eruption. This includes, but is not limited to, eruption of a volcano, earth movement resulting from the eruption process, or discharge, dispersal or accumulation of lava, rock, soot, ash or any other material from a volcano.

12. An intentionally set fire if the dwelling has been vacant for more than 30 consecutive days immediately preceding the loss. A building under construction is not considered vacant.

13. Mismatch of color between undamaged material and new material used to replace faded, weathered or oxidized damaged material.

14. Mismatch between undamaged material and new material used to repair or replace damaged material due to outdated, obsolete or discontinued products.

Additionally do not assume that each DF-3 policy is identical to other companies DF-3 policy form. (READ YOUR INDIVIDUAL POLICY for your company’s specific exclusions, and terms and conditions.)  

If you need a rate quote for your Cincinnati apartment building or single family rental unit Click here or feel free to contact me directly by calling 513-662-7000 or sending a quick email to jack@pathwayinsurance.net

Let’s review typical DF-3 policy form exclusions of coverage for Cincinnati landlords.

We do not cover loss resulting directly or indirectly by any of the following under any Section I – Property Protection coverages. Such loss is excluded regardless of any other cause or event contributing concurrently or in any sequence to the loss.

1. Enforcement of any ordinance or law regulating the construction, repair or demolition of a building or other structure, unless specifically provided under this policy. We do cover loss caused by actions of civil authorities to prevent the spread of a fire caused by a Peril We Insure Against.

2. Earthquake or other earth movement including loss caused by, contributed to or aggravated by landslide, mine subsidence, mudflow, earth sinking, rising or shifting.

3. Water damage, meaning:

a. flood, surface water, waves, tidal water or overflow of a body of water. We do not cover spray from any of these, whether or not driven by wind;

b. water or water-borne material which backs up through sewers or drains or which overflows or is discharged from a sump, sump pump or related equipment; or

c. water or water-borne material below the surface of the ground. This includes water which exerts pressure on or flows, seeps or leaks through any part of a building or other structure, sidewalk, driveway, foundation or swimming pool; caused by or resulting from human or animal forces or any act of nature. We do cover direct loss that follows, caused by fire or explosion.

4. Failure or interruption of power or other utility service which occurs away from the insured premises. We will pay for loss caused solely by a Peril We Insure Against that ensues at the insured premises.

5. Neglect of an insured to use all reasonable means to protect covered property at and after the time of loss, or when property is endangered by a covered loss under Section I – Property Protection.

6. War (declared or undeclared), civil war, insurrection, rebellion, revolution, warlike act by a military force or military personnel, destruction or seizure or use for a military purpose, and including any consequence of any of these. Discharge of a nuclear weapon will be deemed a warlike act even if accidental.

7. Nuclear action, meaning nuclear reaction, radiation, radioactive contamination or discharge of a nuclear weapon even if accidental, or any consequence of any of these. Loss caused by nuclear action is not considered loss by perils of Fire, Explosion or Smoke. Direct loss by fire resulting from nuclear action is covered.

8. Intentional acts, meaning loss resulting from an action by or at the direction of any insured, committed with the intent to cause a loss, or where the results of such action are reasonably foreseeable and cause a loss. Intentional acts include criminal acts. In the event of such loss, no insured is entitled to coverage, even an insured who did not commit or conspire to commit the act causing the loss.

9. a. Any actual or alleged failure, malfunction or inadequacy of:

(1) any of the following, whether belonging to any insured or to others;

(a) computer hardware, including microprocessors;

(b) computer application software;

(c) computer operating systems and related software;

(d) computer networks;

(e) microprocessors (computer chips) not part of any computer system;

(f) any other computerized or electronic equipment or components; or

(2) any other products, and any services, data or functions that directly or indirectly use or rely upon, in any manner, any of the items listed in 9. a. (1) (a) through 9. a. (1) (f) of this exclusion:

due to the inability to correctly recognize, process, distinguish, interpret or accept one or more dates or times.

b. Any advice, consultation, design, evaluation, inspection, installation, maintenance, repair, replacement or supervision provided or done by you or for you to determine, rectify or test for, any potential or actual problems described in 9. a. (1) (a) through (f), and 9. a. (2) of this exclusion.

If an excluded cause of loss as described in 9. a. (1) (a) through (f), and 9. a. (2) of this exclusion results in a Peril We Insure Against we will pay only for the loss or damage caused by the described peril.

We will not pay for repair, replacement or modification of any items, described in 9. a. (1) (a) through (f), and 9. a. (2) of this exclusion, to correct any deficiencies or change any features.

10. Fungi, wet or dry rot, or bacteria.

11. Damage to or loss of use of property resulting from the entire process of a volcanic eruption. This includes, but is not limited to, eruption of a volcano, earth movement resulting from the eruption process, or discharge, dispersal or accumulation of lava, rock, soot, ash or any other material from a volcano.

12. An intentionally set fire if the dwelling has been vacant for more than 30 consecutive days immediately preceding the loss. A building under construction is not considered vacant.

B. In addition to the Section I – Property Protection Exclusions A. 1. through A. 12. above that apply to all Section I coverages, we do not insure for loss to property described in Coverage A – Dwelling and Coverage B – Other Structures caused directly or indirectly by any of the following:

1. a. Wear and tear, marring, or scratching, deterioration;

b. Inherent vice, latent defect, mechanical breakdown;

c. Smog, rust or other corrosion;

d. Smoke from agricultural smudging or industrial operations;

e. Discharge, dispersal, seepage, migration, release or escape of pollutants unless the discharge, dispersal, seepage, migration, release or escape is itself caused by a Peril We Insure Against under Coverage C – Personal Property of this policy. Pollutants means any solid, liquid, gaseous or thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals and waste. Waste includes materials to be recycled, reconditioned or reclaimed;

f. Settling, shrinkage, bulging or expansion, including resultant cracking, of pavements, patios, foundations, walls, floors, roofs or ceilings;

g. Birds, vermin, rodents or insects;

h. Animals owned or kept by an insured;

i. Pressure from or presence of tree, shrub or plant roots;

j. Mismatch of color between undamaged material and new material used to replace faded, weathered or oxidized damaged material; or

k. Mismatch between undamaged material and new material used to repair or replace damaged material due to outdated, obsolete or discontinued products.

If water escapes from a plumbing, heating, air conditioning or automatic fire protection sprinkler system, water heater or household appliance because of any loss identified in exclusion B.1.a. through B.1.k., we cover loss caused by the water. We also cover the cost of tearing out and replacing any part of the covered building necessary to repair the system, water heater or household appliance. We do not cover loss to the system, water heater or household appliance from which the water escapes.

2. Theft in or from a dwelling under construction or of construction materials and supplies until completed and occupied.

3. Freezing, thawing, pressure or weight of water or ice, whether driven by wind or not, to a swimming pool, hot tub or spa, including their filtration and circulation systems, fence, pavement, patio, foundation, retaining wall, bulkhead, pier, wharf or dock.

4. Vandalism or malicious mischief, theft or attempted theft, or breakage of glass and safety glazing materials if the dwelling has been vacant for more than 30 consecutive days immediately preceding the loss. A building under construction is not considered vacant.

5. Freezing of a plumbing, heating, air conditioning or automatic fire protection sprinkler system, water heater, or household appliance, or by discharge, leakage or overflow from the system, water heater or household appliance caused by freezing while the dwelling is vacant, unoccupied or being constructed, unless you have used reasonable care to:

a. maintain heat in the building; or

b. shut off the water supply and drain the systems, water heater and household appliances of water.

6. Weather conditions, if they contribute to produce the loss in any way with a cause or event excluded under Section I – Property Protection Exclusions A. 1 through A. 12.

7. Acts or decisions, or the failure to act or decide, of any person, group, organization or governmental body.

8. Faulty, inadequate or defective:

a. planning, zoning, development, surveying, siting;

b. design, specifications, workmanship, repair, construction, renovation, remodeling, grading, compaction;

c. materials used in repair, construction, renovation or remodeling; or

d. maintenance; of parts or all of any property whether on or off the insured premises.

9. Collapse, other than as provided in Section I – Additional Coverages item 1.

10. Continuous or repeated seepage or leakage of water, steam or moisture, which occurs over a period of weeks, months or years from within a plumbing, heating, air conditioning or automatic fire protection sprinkler system, water heater or household appliance, and results in deterioration, corrosion, rust, or fungi.

11. Theft of property which is not actually part of any covered building or structure.

 12. Wind, hail, ice, snow or sleet to the following when outdoors:

a. radio, or television antennas or aerials, including their head-in wiring, masts or towers;

b. lawns, trees, shrubs or plants; or

c. awnings, canopies and signs.

13. Damage to fences, driveways and walks caused by vehicles owned or operated by you or an occupant of the insured premises.

Under Section I – Property Protection Exclusions B. 1. through B. 9, any ensuing loss to property described in Coverage A – Dwelling and Coverage B – Other Structures not excluded or excepted in this policy is covered.

To find a company offering low-priced premiums for landlord insurance policies in Cincinnati click here.

If you recall the DF-1 and DF-2 policy forms only extend coverage for what is named in the policy.  If something happens to your rental and the peril is not listed in the policy you have no coverage available.

Keep in mind the DF-3 does not provide unlimited coverage for all situations. Exclusions, limitations of coverage and terms and conditions of coverage are listed, read the entire policy carefully.  Additionally do not assume that each DF-3 policy is identical to other companies DF-3 policy form. (READ YOUR INDIVIDUAL POLICY)  Click here to review typical coverage exclusions for the DF-3 policy form in Cincinnati.

Because this coverage is the broadest of the three policy forms it’s also the most expensive. Additionally to obtain the DF-3 policy form requires you to insure your Cincinnati rental property to 80-100% of the replacement cost of the building.  This option may require you to insure your property for an amount much greater than what the market dictates.  This is particularly true with some of the older homes found in the Cincinnati area.

To find a company offering the best premium rates for rental insurance policies in Cincinnati Click here.

Or if you have a question please feel free to contact me directly by calling 513-662-7000 or sending a quick email to jack@pathwayinsurance.net

This policy form is similar to the DF-1, yet offers expanded perils that are insured against.  Bear in mind like the DF-1 policy form, this policy also names the perils that the company insures against.  If a claim occurs to your Cincinnati rental and that peril is not listed on your policy contract, you likely have no coverage available for your loss in most instances.

Additionally there are certain restrictions of coverage and exclusions that may limit coverage so take time to read your policy carefully so you understand what is, and more importantly what isn’t covered.  The worst time to learn something isn’t covered is right after the claim occurs.

Click here to review typical coverage exclusions for this policy form in Cincinnati.

To obtain the DF-2 policy form you may be required by the insurance company to insure your Cincinnati rental property to 80-100% of the replacement cost of the building.  This option may require you to insure your property for a significantly greater amount than the true market value of your property.  Especially is that true with some of the older homes found in the Cincinnati area. (Check for further details by contacting us directly.)

Below you will find a list of covered perils typical of the standard DF-2 policy form:

1. Fire or Lightning

2. Windstorm or Hail

This does not include loss:

A. Caused directly or indirectly by frost, cold weather, ice other than hail, snow or sleet whether driven by wind or not;

B. To the interior of a building, or property within, caused by rain, snow, sand, sleet or dust unless the building is first damaged by the direct force of wind or hail, creating an opening through which the rain, snow, sand, sleet or dust enters; or

C. To the following when outdoors:

(1) Radio, or television antennas or aerials including their lead-in wiring, masts or towers;

(2) Watercraft and their trailers, furnishings, equipment and motors;

(3) Lawns, trees, shrubs, or plants; or

(4) Awnings, canopies and signs.

3. Explosion

4. Riot or Civil Commotion

5. Aircraft, including self-propelled missiles and spacecraft.

6. Vehicles, meaning impact by a vehicle.

This peril does not apply to loss to fences, driveways and walks caused by vehicles owned or operated by you or an occupant of the insured premises.

7. Smoke, if the loss is sudden and accidental.

This peril does not apply to loss caused by smoke from agricultural smudging or industrial operations.

8. Vandalism or Malicious Mischief

This peril does not apply to loss:

A. By theft, burglary or larceny; or

B. At the insured premises if the covered dwelling has been vacant for more than 30 consecutive days immediately before the loss. A dwelling under construction is not considered vacant.

9. Burglars

This peril does not apply to loss to property:

A. Taken by burglars; or

B. At the insured premises if the dwelling has been vacant for more than 30 consecutive days immediately before the loss. A dwelling under construction is not considered vacant.

10. Falling Objects

This peril does not apply to loss to:

A. The interior of the building or to property within a building unless the falling object first damages the exterior of the building;

B. Outdoor radio and television antennas and aerials, including their lead-in wiring, masts or towers; or

C. Outdoor equipment, awnings, canopies and fences. We do not cover damage to the falling object.

11. Weight of ice, snow or sleet which damages a building or property in the building.

This peril does not include loss to an awning, fence, patio, pavement, swimming pool, hot tub or spa, including their filtration and circulation systems, foundation, retaining wall, bulkhead, pier, wharf, or dock.

12. Collapse of a building or any part of a building.

A. We cover direct physical loss to covered property caused by the complete collapse of a building or any part of a building.

B. Collapse, as used in this coverage, means an abrupt falling down or caving in of a building or other structure or any part of a building or other structure with the result that it cannot be occupied for its intended purpose. A building or other structure or part of a building or other structure is not considered in a state of collapse if it is standing:

(1) But not in imminent danger of falling down or caving in;

(2) But has separated from any other part of the building; or

(3) Even if it shows signs of settling, cracking, shifting, bulging, sagging, bowing, bending, leaning, shrinkage, or expansion.

C. The collapse must be sudden and accidental and caused by one or more of the following:

(1) Perils We Insure Against in this policy;

(2) Hidden decay;

(3) Hidden insect or vermin damage;

(4) Weight of contents, equipment, animals or people;

(5) Weight of rain which collects on a roof; or

(6) Use of defective material or methods in construction, remodeling or renovation if the collapse occurs during the course of the construction, remodeling or renovation.

D. We do not cover loss to an awning, fence, patio, deck, pavement, swimming pool, underground pipe, flue, drain, cesspool, septic tank, foundation, retaining wall, bulkhead, pier, wharf or dock under items 12. c. (2) through 12. c. (6) above, unless the loss is a direct result of the collapse of a building.

E. This coverage does not increase the limit of liability applying to the damaged covered property.

13. Sudden and accidental tearing apart, cracking, burning, bursting or bulging of a steam or hot water heating system, air conditioning system or automatic fire protection sprinkler system or a water heater.

This peril does not apply to loss to the system, or water heater, or loss which is caused by or results from freezing except as provided by the peril of Freezing in this policy.

14. Sudden and accidental discharge or overflow of water or steam from within a plumbing, heating, air conditioning or automatic fire protection sprinkler system, water heater, or household appliance.

We will also pay the cost of tearing out and replacing any part of the covered building necessary to repair the system or appliance from which the water or steam escapes.

This peril does not apply to loss:

A. To the system, water heater, or household appliance from which the water or steam escapes;

B. Due to continuous or repeated seepage or leakage of water, steam or moisture which occurs over a period of weeks, months or years and results in deterioration, corrosion, rust, or fungi;

C. Caused by or resulting from freezing except as provided by the peril of Freezing in this policy;

D. At the insured premises if the dwelling has been vacant for more than 30 consecutive days immediately before the loss. A building under construction is not considered to be vacant; or

E. On the insured premises caused by accidental discharge or overflow which occurs off the insured premises. In this peril, a plumbing system does not include a sump, sump pump or related equipment.

15. Freezing of a plumbing, heating, air conditioning or automatic fire protection sprinkler system, water heater, or household appliance.

This peril does not include loss on the insured premises while the dwelling is vacant, unoccupied or being constructed, unless you have used reasonable care to:

A. Maintain heat in the building; or

B. Shut off the water supply and drain the systems, water heater, and household appliances of water. In this peril, a plumbing system does not include a sump, sump pump or related equipment.

The information we have considered here is only one aspect of the dwelling fire policy. It’s important for you to take time to read your individual policy for further understanding of coverage terms, options and exclusions.

If you have a question please feel free to contact me directly by calling 513-662-7000 or sending a quick email to jack@pathwayinsurance.net

If you would like Pathway Insurance to find a low cost option for you on rental insurance policies in Cincinnati click here.

What does a deduction for depreciation signify?  Typically it means the insurance company will determine the fair value of the property at the time of loss.  What someone would “pay” for that property based on the age, condition, and wear and tear of that damaged item.

For instance, if your insurance company considers the life expectancy of a roof to be 20 years and your roof is 10 years old at the time of a loss the insurance company will (in addition to your deductible) subtract 50% from the loss amount!

So if the cost to replace a roof is $8,000 the insurance company subtracts $4,000 because of depreciation and then subtracts your deductible from that figure.

Or let’s assume that you own a television that is 10 years old.  You might have paid $500 for that state of the art TV set ten years ago but today it may only be worth $50 and that’s what the insurance company would pay you for that item if your loss is settled on an ACV basis. (Please note that personal property coverage is normally not available on the DF-1, DF-2, or DF-3 policy form unless it is endorsed to your policy)

Keep in mind that certain homeowners, landlord, condo, and renter’s insurance policy forms may offer only ACV loss settlement provisions. In some cases you may elect to have an endorsement placed upon your policy to provide replacement cost coverage.

ACV loss settlements could leave you in a deep hole financially so choose your options wisely.

To find an insurance company offering the best premium rates in the Cincinnati area on homeowners insurance click here.

Or if you have a question please feel free to contact me directly by calling 513-662-7000 or sending a quick email to jack@pathwayinsurance.net

A  DF-1 policy is a basic policy with very limited coverage. The DF-1 is a named perils policy, but also the least expensive coverage option for Cincinnati landlords.  Only what is named in the policy would be covered.

Click here to review typical coverage exclusions for this policy form in Cincinnati.

Additionally the DF-1 settles claims on an actual cash value basis, meaning specifically that depreciation is deducted for any claim written under the DF-1 policy form.  (Click here to learn what an ACV loss settlement means to you.)

Take time to read your policy carefully so you understand what is, and more importantly what isn’t covered under this policy form. There are many gaps in coverage when you select this policy form.  The worst time to learn something isn’t covered is right after the claim occurs.

What perils are typically covered by the DF-1?

The insurance company will cover direct physical loss to property insured under Coverage A – Dwelling and Coverage B – Other Structures caused by:

1. Fire or Lightning

2. Windstorm or Hail

This does not include loss:

A. Caused directly or indirectly by frost, cold weather, ice other than hail, snow or sleet whether driven by wind or not;

B. To the interior of a building caused by rain, snow, sand, sleet or dust unless the building is first damaged by the direct force of wind or hail, creating an opening through which the rain, snow, sand, sleet or dust enters; or 

C. to the following:

(1) radio, or television antennas or aerials including their lead-in wiring, masts or towers;

(2) watercraft and their trailers, furnishings, equipment and motors;

(3) lawns, trees, shrubs, or plants; or

(4) awnings, canopies and signs.

 3. Explosion

This peril does not apply to loss by explosion of steam boilers, steam pipes, steam turbines or steam engines owned by or leased by you or operated under your control.

Explosion does not mean:

A. Electric arcing;

B. Breakage of water pipes; or

C. Breakage or operation of pressure relief devices.

 4. Riot or Civil Commotion

 5. Aircraft, including self-propelled missiles and spacecraft.

 6. Vehicles, meaning impact by a vehicle.

This peril does not apply to loss to fences, driveways and walks caused by vehicles owned or operated by you or an occupant of the insured premises.

7. Smoke, if the loss is sudden and accidental.

This peril does not apply to loss caused by smoke from fireplaces or from agricultural smudging or industrial operations.

8. Vandalism or Malicious Mischief

This peril does not apply to loss:

A. By theft, burglary or larceny. This peril does apply to damage to the covered dwelling or covered other structures which is caused by burglars;

B. At the insured premises if the covered dwelling has been vacant for more than 30 consecutive days immediately before the loss. A dwelling under construction is not considered vacant; or

C. To glass or safety glazing material which is part of the covered dwelling or covered other structures, except for glass building blocks.

The DF-1 is the least expensive option for Cincinnati rentals but also offers limited coverage. Additionally losses are settled on an actual cash value method of loss settlement.  This means a deduction for depreciation will be taken into consideration for loss settlements, unlike a tradition homeowner’s policy or a Df-2 or Df-3 which may provide replacement cost coverage with no deduction for depreciation.

The information we have considered here is only one aspect of the dwelling fire policy. It’s important for you to take time to read your individual policy for further understanding of coverage terms, options and exclusions.

If you have a question please feel free to contact me directly by calling 513-662-7000 or sending a quick email to jack@pathwayinsurance.net

Pathway insurance has available a variety of companies that offer the DF-1 with very low prices for investors who own rental properties with 4 units or less in Cincinnati. Click here.

The most common policy type available for Cincinnati landlords with 4 rental units or less is the dwelling fire policy. Agents will sometimes refer to such polices as a landlord policy.   If you own a building with more than 4 units a commercial property policy form will be necessary.  

You can receive a quote from our agency if you live and or own investment property in the states of Ohio, Kentucky, or Indiana, or through our network of agents we work with in all 50 states. Click here to begin your online landlord policy quote request. Please email me at jack@pathwayinsurance.net  if you need quotes for apartment buildings with 5 units or more.

Let’s discuss your options for landlord policies in the Cincinnati area. The landlord policy is available in 3 different policy forms:

DF-1 Basic Form- Click here to see what typically is covered under the DF-1

DF-2 Broad Form- Click here to see what typically is covered under the DF-2

DF-3 Special Form- Click here to see what typically is covered under the DF-3

It is important for you to understand the benefits and or limitations of each policy form.  If you select a DF-1 policy for your Cincinnati rental because it’s the least expensive option and your roof collapses because of the weight of snow or ice there is no coverage under this policy form.  Or let’s assume a water pipe breaks and ensuing damage is caused, no coverage is available under the DF-1.  (Read what is covered under the DF-1)

Carefully select the policy that is best for your circumstances and budget.  The DF-1 is the least expensive but has the most limitations of coverage while the DF-3 policy offers all risk on your Coverage A (and replacement cost coverage in most cases) in comparison to the DF-1 which only covers 8 different perils. Check your individual policy for complete details. Vandalism or Malicious Mischief may not be automatically covered under the DF-1 with all insurance companies offering rental insurance policies in Cincinnati but may need to be added as an option.

Additionally the DF-1 policy form is settled on an actual cash value basis (ACV) meaning that a deduction for depreciation is taken into consideration when settling your claim.  

What does a deduction for depreciation signify?  Generally it means the insurance company will determine the value of the property based on an estimated amount of the destroyed item at the time of loss.  For instance, if your insurance company considers the life expectancy of a roof to be 20 years and your roof is 10 years old at the time of a loss the insurance company will (in addition to your deductible) subtract 50% from the loss amount!

So if the cost to replace a roof is $8,000 the insurance company subtracts $4,000 because of depreciation and then subtracts your deductible from that figure. (Ouch)

A replacement cost loss settlement only subtracts the deductible.  So as you can see replacement cost is a superior option, but the cost is more for this coverage so you should choose your coverage wisely to fit your budget and your circumstances. 

To find an insurance company offering low premium rates for landlord insurance policies in Cincinnati click here.

Or if you have a question please feel free to contact me directly by calling 513-662-7000 or sending a quick email to jack@pathwayinsurance.net

An important question should be addressed when Cincinnati families decide to buy their insurance directly with an insurance company:

What do you give up when you buy insurance directly with the company?

In a previous series of articles I highlighted why consumers need a strong advocate to help them if they need assistance with claims. 

When you buy an insurance policy from a company that sells direct there is no strong advocate available to help you if there were a problem with a claim.

In addition when you buy your insurance direct there is no agent specifically assigned to your individual account to answer questions or provide advice about claims.  If you have a problem and you call their customer service line they will direct you to speak with a claims adjustor.

If you recall in a previous article I mentioned that when a claim is not settled to a policyholder’s satisfaction I made the assertion that about 50% of the time it is the claims adjustor who is dropping the ball based on my observation over the years of helping clients with claims.

If you purchased your insurance directly with the company, and they direct you back to the department where the problem started in the first place, how pray tell will that help you?

An unbiased insurance advocate who is experienced in trudging through the bureaucratic layers of the claims process is in a much better position to provide assistance verses someone whom is an employee of that company, doesn’t that make sense?

In our case, the agents and employees with Pathway Insurance work for our clients.  We are not “company men.” We are not employees in fear of sanctions or termination of our employment by giving you advice that is in your best interest verses the best interest of the insurance company. We work for our clients.

If you are not currently a client of Pathway Insurance, why not take steps to have your insurance taken care of by an agency that offers a complete satisfaction guarantee?  Click here to start the process of receiving low cost insurance quotes for Cincinnati drivers.

If you ever have an issue with an insurance company paying you fairly with a claim, having a strong advocate working for you could have made all the difference in the world.

If you have not had our agency complete new quotes for you in some time click here. Or feel free to contact me directly by calling 513-662-7000 or sending a quick email to jack@pathwayinsurance.net

A home insurance policy does not provide unlimited coverage, so you should take time to understand where any potential gaps in coverage may be apparent.  Now we will discuss further limitations of coverage on the home, condo, or renters policy.

As will be discussed in more detail in another article the home policy (Condo and Renters policy have different coverage parts) and what is covered is broken down into something called  ”Sections”.  Section 1 for the home policy has 4 distinct coverage parts:

We will focus specifically on Coverage C-Personal property limitations of coverage. 

Certain types of personal property are either not covered, or they have limitations on the maximum amount of money that will be paid for those items in the event of a loss for instance:

Computers, especially lap top computers or business equipment that you keep in your home.

Antique furniture and Fine Arts.

Theft of jewelry, watches, precious and semi-precious stones and furs, including any article containing fur which represents its principal value. 

Theft of silverware, silver-plated ware, goldware, gold-plated ware, platinumware, platinum-plated ware and pewterware.

Theft of guns.

Theft of sports cards or other collectible cards.

Theft of hand tools (not including lawn and garden tools and equipment).

Money, bank notes, bullion, coins and medals and other numismatic property and precious metals including platinum, gold and silver, but not goldware or silverware.  

Securities, accounts, deeds, evidence of debt, letters of credit, notes other than bank notes, passports, manuscripts, tickets, stamps and other philatelic property. This dollar limit applies to these categories regardless of the medium (such aspaper or computer software) on which the material exists. The limit includes the cost to research, replace or restore the information from the lost or damaged material.

This is a brief list of common personal property items that have limited or no coverage.  Certain companies may have endorsement riders that can be attached to the policy that will provide a limited amount of coverage, but your deductible would apply.  Or you can schedule a individual item on something called an inland marine property schedule.

Always read your individual policy for complete detail.  If you are a client of Pathway Insurance, please contact us directly to discuss your individual circumstances.  Or if you would like a free analysis you may contact me directly at jack@pathwayinsurance.net

Remember the worst possible time to learn you do not have the correct amount of coverage is after a claim occurs.