12/22/2022
Explaining homeowners insurance using a gingerbread house:
Dwelling A: the cost of baking materials, sprinkles, gumdrops, and frosting go up with inflation and the total replacement cost to rebuild the exact same gingerbread house costs more each year. The plastic foundation will need replaced. The removal of cookie debris takes time and money. (And multiple helpers to eat it all)
Coverage B-additional structures:
does your gingerbread man have a gingerbread shed, gazebo, Twix bar fence, outbuilding, pole barn to house the candy cane car? A set % of dwelling A coverage automatically goes to the additional structure coverage. Make sure the amount you have is enough and increase this limit if necessary based on what you have.
Coverage C: personal property. The gingerbread man’s candy couch, peppermint TVs, and any other items not part of the structure or fixtures. This is also usually a default %. Your coverage may seem higher than what you think you need but you want there to be enough coverage to get you a brand new peppermint TV and not the actual cash value for the one you bought in 2017.
Coverage D: loss of use. If a hungry relative comes in and eats a portion of the gingerbread house, your gingerbread family will need somewhere else to stay while you rebuild. This coverage goes toward the apartment, housing, or hotel. (Or in this case, the cooking sheet you lay them on for a while 🤣)
Coverage E: liability. If you have a rogue twizzlers laying in the frosting yard and a guest trips and falls and breaks off a portion of their gingerlegs, the guest can sue you and come after your home, assets, 401k plan to recoup their losses. This liability steps in to help with that but an umbrella (gumbrella) policy is also recommended for additional protection.
Coverage F: med pay. The initial medical payments towards a hurt guest. Using the twizzlers fall example from coverage E: this is the initial money towards medical bills. In order for coverage E to kick in and pay the rest, you have to be formally sued by the injured ginger-friend.
Those are just the main coverages. There are endorsements if hot fudge backs up into the basement, or to cover the gummy necklace your wife wears that came over with the original gingerbread settlers on the good ship lollipop.
Please reach out for a full gingerbread home review, and have a wonderful holiday season!
