Owning a home is one of the greatest responsibilities (and sometimes headaches) people will have in their lifetime– which is why protecting it through home insurance is so important. And if you’re like most people, you would think that after meeting with an agent, you have the coverage you need. Unfortunately, that isn’t always the case.
There are a few important coverages that are often missing from people’s insurance policy because they aren’t automatically included on your standard home insurance policy.
So, we compiled a list of five important coverages you may be missing.
Water Back-Up coverage
This is one of the most frequent causes of home insurance claims but isn’t included on a standard home policy. It covers damage to your house or property if there is a back-up of a sewer or drain and should be added to most home policies, especially if you have a basement.
Replacement cost on contents
Home insurance includes two primary types of property coverage- one is for the dwelling itself and the other is for contents, or the things you own. If something happens to your home, most people will want to rebuild, which is why most agents cover the policy for “Replacement Value” or what it would cost to rebuild the home or repair any damage. However, contents can be insured differently, and agents will often insure them at “Actual Cash Value” which means you wouldn’t be able to replace your TV or Refrigerator or another important item…you would only get what it’s worth today which is often much less than when you bought it.
Scheduled Property Coverage
Contents coverage is great to have but some items in your home may have maximum coverage limits on a standard home policy. Common items are jewelry- like a wedding ring, guns, tools, and computer equipment. We usually recommend that you specifically list these items our and include their value to be sure you’re fully protected.
In today’s world, social media is more prevalent than ever. Most people don’t consider what would happen if someone sued them for a slanderous tweet or Facebook post, even if that wasn’t their intention. Personal Injury can be added as an endorsement to home insurance and will provide protection if you’re ever sued for libel or slander.
Coverage for a home-based business
So many more people are working and building businesses from home since the pandemic, but what you might not realize that most business activities are excluded from a home insurance policy. If you have customers visiting your home or if you’re storing business equipment, be sure to look to see if this will be covered on your basic home policy. You may need a separate business insurance policy to ensure that your tools, supplies, and products are properly protected.
As always, the most important thing is to work with an independent agent to review your coverage to be sure you are protected.
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