When taking out a property insurance policy, you have the option of having allied lines. This refers to extra insurance that you can purchase and have it associated with the standard property insurance policy. This policy must include fire insurance and is of particular importance to business owners. However, there are many other types of insurance for which you can have allied lines.
In this technological age, many people work from home or have a home-based business, at which they store most of the data they need on the hard drive of their computer and back it up on discs or CDs. They also make extensive use of computers and other types of media equipment on location when running a business in a different location. The data processing equipment that you use on a day-to-day basis is an important component of your business, and therefore needs coverage on its own in your insurance policy. You can purchase this insurance by stating the risks and perils, or have a more comprehensive policy that covers all risks and perils. The policy will cover the cost of replacing any damaged equipment to restore your business to its state before the accident occurred.
If your business were to be completely destroyed by fire, or if the zoning requirements of your city demand that the building be demolished, this type of coverage in allies lines will cover you for the expenses involved in relocating your business.
Very few insurance providers will issue any policy for earthquake insurance. However, it may be possible to have one added on to your property insurance by purchasing it separately and having it associated with the policy as an allied line. It will cover expenses incurred as a direct result of an earthquake or a volcanic eruption, and claims must be made within 72 hours of the incident. Such a clause on a property insurance policy does not cover damage resulting from other events caused by the earthquake, such as fire, landslide, explosion, flood or tidal wave.
Increased cost of construction
If you do have demolition insurance as one of the allied lines of your insurance policy, then you should also have a clause for increased cost of construction. When you have to rebuild, the price of materials and contractors has undoubtedly gone up since the building was first built. If you do not receive enough from the demolition insurance to cover all your rebuilding costs, then this clause will kick in to give you the amount you need to construct another building for your needs. This is necessary because there are building codes now in place in cities that were not in existence when many of the older buildings were built, and it takes more money to comply with these codes.
This is a form of inland marine insurance that you need if you have radioactive materials stored on your property. It also applies if you have a business in which you use such materials in your line of work.
Just about everyone uses a sprinkler to water the lawn in the summer, but not many people realize that they can purchase extra insurance to cover damages caused when there is a leak in the sprinkler system. This coverage is an endorsement issued along with a standard property insurance policy and covers any damage that may result from the sprinkler system automatically coming on at an inopportune time, causing damage to the property.
If you own property on which you cut down trees for sale, then standing timber coverage on your policy will insure you for loss of the timber due to fire and lightning only. The trees must be free of decay and be of a certain width and height in order to qualify for this type of allied line on your policy.
Vandalism and malicious acts
Although vandalism is covered under a standard policy, you can have extra coverage with an allied line for specific vandalism. However, the act of vandalizing your property must be directed specifically at you, and not be considered a random act. It refers to vandalism that occurs during the daylight hours when the property is unoccupied. Churches and schools are the buildings that most often have this allied line, which carries a very high deductible.