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| p.2 #10 · Equipment Insurance Question |
Any "free" coverage you receive through a membership in any organization is almost always going to be an excess policy. You usually do not fill out a detailed application nor declare a specific list of named items/serial numbers/dates of purchase, etc. It is meant to provide coverage up to the stated amount, subject to the terms, limits and exclusions of the policy, in excess of any other policies you may have, as are all insurance policies by the way. The policy is designed to prevent double coverage, or double dipping as it is referred to. If you have no other coverage it then becomes primary, but you will be asked to document that fact. Most people have homeowner or renter insurance, thus the question. It is also a way of making other insurers aware of the loss and hopefully avoid double payment. If you are running a business, your homeowner's coverage will usually not cover your business related items unless that company also writes business riders, your business is scheduled, and premiums paid for such coverage. If you are a hobbyist, your items are covered subject to the terms and conditions of your homeowner's policy. The actual limits and exclusions may vary widely among individual HO policies. The free coverage will cover per it's terms and conditions any covered loss in excess of other coverages you may have up to it's term limits. You will also be required to document the same information should your separately insured business items (on a named business policy for which you pay premiums) be in your home that is destroyed or damaged by fire/tornado etc or other losses involving both policies. That is how insurance works and how it best deters fraud/multiple claims for the same loss, and the collection of multiple payments for the same loss. This is standard to all insurance coverage, not just the company in question.