Home Insurance Coverage Options

Many homeowners may incorrectly assume that a home insurance policy will cover them in all cases of loss, but that isn't always the case. A basic home insurance policy protects you from structural damage to your home, liability claims, loss of items not attached to your home and your possessions. So sometimes you will need to add additional home insurance coverage for items that are not specifically covered under a standard home insurance coverage policy. But what is considered an optional or additional home insurance coverage?

Types of Home Insurance Coverage Available

There are several optional home insurance coverage types-called "endorsements"-which can be added to your basic home insurance policy.

Flood Insurance Coverage-Flood damage is not covered under your standard home insurance policy. Floods can happen practically anywhere, not just flood zones, so flood home insurance coverage can be a valuable addition to any policy.

Earthquake Insurance Coverage-Earthquakes aren't limited to California. There has been recent seismic activity in the Midwest as well as Arizona. The damage caused by earthquakes is not covered under your standard home insurance policy.

Identity Theft Coverage-ID theft can ruin your financial life. Identity theft coverage is a relatively new addition to home insurance coverage and is available to homeowners concerned about having their identity stolen by one of the many full-time scammers, hackers, and thieves.

Expensive Jewelry Coverage-Typically, home insurance coverage includes a percentage of expensive items like jewelry. But if you want to recover the full value of a particular item (such as a diamond ring) in case of a loss, you can purchase a "floater" to your home insurance coverage policy that will cover the specific item.

Business Endorsements-Business Pursuits endorsements are for people who work at home but do not own the business. Permitted Incidental Occupancies endorsements are for homeowners who own a business being operated from home (this endorsement includes liability coverage).

Duplicate Home Insurance Coverage

No one wants to pay twice for the same thing. To make sure you aren't purchasing additional home insurance coverage for an item already protected by your basic home insurance coverage, examine your policy and don't be afraid to ask your insurance agent questions. It's important that you look at your policy's claim limits to determine if you really are duplicating home insurance coverage for the item. The best way to know that you have the proper home insurance coverage is to work with your insurance agent and recognize all the perils of where you live.

Once you decide how much home insurance coverage you need, the best way to get the lowest rate is to compare home insurance quotes with InsWeb.