Home Insurance Terminology Explained

Exploring Coverage Options for Your Homeowner Insurance Policy

Homeownership can be a dream come true and even an investment for your future. Nonetheless, it also comes with certain risks that you need to consider. Thankfully, the right homeowners' insurance policy can significantly mitigate these risks. Your policy can protect you from various hazards such as theft, vandalism, fire, and damage resulting from natural disasters. However, you can tailor your insurance policy beyond these basic coverages. Explore some options you can add to your homeowners' insurance policy.

Additional Living Expense Coverage:

If your home is damaged and you must stay elsewhere while it awaits repair, additional living expense coverage can provide you with funds for payments like food, hotel stays, and even pet boarding. In case your house becomes uninhabitable as a result of covered damage, cover the temporary living expenses you incur until you can inhabit your home again.

Scheduled Personal Property Coverage

If you have high-value items such as artwork, jewelry, or electronics, you can add this coverage to your homeowner's insurance policy. This coverage will allow you to insure single items or collections at an agreed value that may surpass the standard policy limits.

Water Backup Coverage

This coverage will protect you from the damages caused by water that backs up through your sewer or drain. Such damages can include floods, damage to your flooring, and even contaminated water. This coverage can also extend to cover sump pump failures.

Personal Umbrella Liability Coverage

Your homeowner's insurance policy may have limits on its liability coverage. If a lawsuit is filed against you, this umbrella coverage will provide a cushion against costs beyond the standard policy limits. It may also provide additional coverage for claims your policy may not ordinarily cover.

Identity Theft Coverage

Identity theft has become a significant concern in recent times. If you are a victim of identity theft, you may incur significant expenses to restore your identity, including untold hours of personal time. With identity theft coverage, your homeowner's insurance policy may help pay for restoring your identity and repairing any damaged credit. This option provides coverage for those expenses.

Aside from the standard homeowner's insurance policy coverages, some options can enhance your protection. The coverage options mentioned above are a few examples that you can consider. It is essential to sit down with your insurance agent to determine which suits your specific needs. Your agent can also explain any limitations or exclusions, ensuring you have all the details to make a wise decision. Having some of these additional coverages included in your homeowner's insurance policy can mitigate the chances of incurring significant financial losses in case of any unexpected events.

For more information on home insurance, contact a professional near you.