Three Types Of Insurance Coverage That Are Often Overlooked For A Homeowners Policy

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.


Little-known Insurance Tips

While I have had auto insurance ever since I bought my first car at 16 years old and home insurance ever since I bought my first home several years ago, I have to admit that over the years I knew very little about insurance. I tended to just look at the price of the coverage and sign the paperwork without really looking into the pros and cons of each policy. After my friend was in a car accident recently (thankfully, she is okay!) and she said she had to pay for some of the damage to the other vehicle out-of-pocket even though she had a minimum state coverage auto insurance policy, I decided to put a lot of careful research into insurance policies and what they really offer. I want to help others by sharing the information I have learned on a blog. I hope I can help you!