Home Insurance Coverage Options
Many homeowners assume that their homeowner's insurance policy will cover them in all cases of loss, but that isn't always the case. The basic homeowner's insurance policy protects you from damage to your home, liability claims and loss of your possessions. In some cases you will need to have additional homeowner's insurance coverage for items that are not covered under your standard homeowner's insurance policy. You want to make sure your policy has certain coverage's like home replacement cost or guaranteed home replacement cost these coverage's will guarantee you to have your home rebuilt the way it is should something happen.
There are several types of optional homeowner's insurance coverage's available. These types of coverage's are called "endorsements". These endorsements can be added to your basic homeowner's insurance policy. The following are considered optional or additional homeowner's insurance coverage's:
Guaranteed or extended home replacement cost
You can get a higher level of protection from either having the extended home replacement cost option or guaranteed home replacement cost option. The guaranteed home replacement cost or extended home replacement cost option will pay a specified amount above your coverage limits to rebuild your home. If building costs go up in your area these options pay whatever it costs to rebuild the home, no matter how much construction costs have gone up they will pay to replace the home.
If you have a mortgage loan on your home your lender will require you to insure your home for at least the mortgage amount or the amount of the money you borrowed. This means that if you are insured for the amount of the mortgage and the cost to rebuild is more than the amount of coverage then your insurance company will only pay up to the insured amount to have your home rebuild thus resulting in your home being underinsured.
Flood Insurance coverage
Flood damage is not covered under your standard homeowner's insurance policy. A flood can happen anywhere you don't have to be in a flood zones. If you live near a stream and it rises and floods your home this is considered a flood and not covered by your standard policy. Where if you had a broken water pipe and your house floods this would be covered as it is an accident and not an act of nature. So it is important to consider flood insurance coverage if you feel there is a chance of a flood can happen to you, it can be a priceless addition to your policy.
Earthquake Insurance coverage
It is important to know that earthquakes can happen anywhere and don't just happen in California. There are earthquake signs in many of the mid west and western states but most of the activity is in California the earthquake signs are called seismic activity. The damages that are caused by earthquakes are not covered under your standard homeowner's insurance policy. This is why it's important to consider earthquake insurance if you live in a seismic active area.
Business Insurance coverage
If you work from your home you might want to consider having business insurance if you have visitors to your home or have valuable equipment. There is a business insurance endorsement for people who operate a business out of their homes. There is also an endorsement called permitted Incidental Occupancies endorsement. This endorsement is for homeowners who own a business that's being operated from their home it also includes liability coverage. Additional "Expensive Items" Coverage
Typically your homeowner's insurance policy has a limit on the amount the policy will pay for personal property. It is important to know your coverage limits and the value of your possessions. This includes expensive items like jewelry, electronics or any other valuable possessions. If you want to recover the full value of your possessions in case of a loss, you will need to purchase additional coverage with an endorsement to your homeowner's insurance policy that will cover these expensive items.
Identity Theft Coverage
Identity theft can be devastating and possibly ruin or setback your financial life. Identity Theft Coverage is a new type of endorsement to homeowner's insurance policy. It is available to homeowner's that are concerned about having their identity stolen. You might want to consider this coverage if you are at higher risk of having your identity stolen.