| Many homes are insured on a
Homeowners form policy. In the insurance industry, the term `Homeowners policy'
refers to a package policy that
incorporates property coverage for the dwelling, appurtenant structures, and
contents, along with a liability section providing personal liability.
Optional endorsements can broaden coverage if applied, such as glass
breakage and replacement cost coverage.
One viable alternative is to insure your home using a dwelling and personal property
coverage policy through a Farm
Mutual company. Farm Mutuals were originally chartered to provide
insurance coverage to the rural areas of Texas where other insurance
companies would not operate. Through the years Farm Mutuals have grown into
modern carriers offering multi-peril and broad form coverage for homes, farms, churches
and organizational buildings.
Through companies like Germania Farm Mutual in Brenham, Texas,
insurance is available to insure a home and contents very much like the
Homeowners policy. Farm Mutuals enjoy the freedom from form regulation
and from rate regulation that allows
companies such as Germania Farm Mutual to provide coverage for barns,
hay or field products, all terrain vehicles, tractors and implements,
horse and farm utility trailers and other property that cannot be
insured on a Homeowners policy. By providing personal liability coverage
through a comprehensive personal liability or farm liability policy
offered by a subsidiary company, the
insurance package is complete.
The Germania Farm Mutual policy is specifically designed to insure
rural property and the wide range of exposures associated with farming
and ranching. Even though Farm Mutuals write the majority of their
business in rural areas, they gladly insure dwellings in town as well.
Now with enhanced coverages such as Identity Theft Recovery and
Comprehensive Computer Equipment coverage and business property coverage
- the policy can do things that many other Homeowners policies do not.
The Germania Farm Mutual policy provides glass breakage coverage
without a specific limitation per pane of glass; coverage for business
personal property used in a home both on and off premises; and coverage
for ATVs on and off premises as well. These coverage enhancements make
the Germania Farm Mutual policy an excellent alternative for Texas
home-owners, both urban and rural.
The philosophy behind a Farm Mutual is somewhat like a co-op. Farm
Mutual policyholders are owners in the company, and unlike stockholders
who benefit from ownership through dividends and increases in stock
prices, Farm Mutual policyholders receive a benefit through premium
savings provided by careful underwriting and management to control
losses and operating expenses. This philosophy of efficient pricing,
combined with cost saving discounts for such things as companion
policies, metal roofs, and loss-free history make Farm Mutual policies
like that offered by Germania, an excellent alternative for Texas home
owners.
Russell Janecka is a Certified Insurance Counselor. He is the owner of Janecka Insurance Agency in Victoria, and serves on the board of directors with Germania Insurance Companies. (361) 573-4475 e-mail: info@jiavic.com
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