Posted on: 19 May 2023
If you are buying a home for the first time, you will need a homeowners insurance policy. It is easy to purchase a policy, you can buy it online, and it will contain all the basic insurance for a house, but you may not understand exactly what you're getting and what has been overlooked. Overlooked coverage is optional, so you didn't think you needed it. For an existing homeowner, this optional insurance may create a situation where you are underinsured. So whether you are about to become a new owner or are an existing one, you should consider the following types of coverage.
You should consider water damage coverage
As you may already know, your homeonwers policy will not cover damage from floods. This includes flooding from storms, hurricanes, rivers, and any other natural disaster. However, there are other types of water damage you can insure against. Examples include a burst water pipe or sewage backup from a clogged sewer line. Although this coverage is available, most policies will not include it, or will only pay a portion of a claim. You should take a look at your current policy or discuss this with an insurance agent about the standard coverage on your policy or the policy you want to buy.
You should consider scheduled personal property coverage
Your homeowners insurance will likely cover the personal property inside your house in case there is a disaster, such as a fire; however, your policy may not be what you think it is. Homeowners policies will have an upper limit on your personal property. This is often a percentage of the value of the house, but there are several items that it will cover for less or not cover at all. It's not uncommon for jewelry to be excluded, as well as firearms, in short, high-dollar items. So if you have a high dollar amount invested in items such as these or other valuable, then you should purchase scheduled coverage for personal property.
You should consider business owner coverage
This type of coverage is for those who have a business they operate out of their homes. In today's economy, this has become common, and it doesn't have to be a full-time business. Any type of business that utilizes equipment or has inventory associated with it, needs to be insured because your homeonwers policy will not cover it. If disaster strikes, you don't want to lose both your home and your business.
It is easy for a homeowner or soon-to-be homeowner to overlook certain types of optional insurance that you may need. Among these are water damage from water and drain pipes, valuable personal property, and assets for your home business. This is only a partial list. To understand the full range of options available to you, contact a home insurance agent.Share