How much coverage is too much? When it comes to your largest investment, it’s better to be safe than sorry. While a homeowners insurance policy will provide basic coverage for your home and some belongings, it can still leave gaps. Insurance companies offer many different optional coverages to fit your needs. Consider these 5 optional coverages when updating your homeowners insurance policy!
1. Personal Property Replacement Cost
Your homeowners insurance policy will generally include personal property coverage that will replace your belongings in the event they are lost or damaged under a covered peril. That coverage would replace your lost or damaged items under actual cash value, which takes depreciation into consideration. If you select personal property replacement cost optional coverage, your lost or stolen items covered under a named peril would be replaced based on cost value rather than the depreciated value of a damaged item.
2. Dog Limited Liability Coverage
A dog bite can quickly rack up medical and legal fees. This is where additional dog limited liability coverage comes into play. Your homeowners policy by itself typically has restrictions on dog breeds and the amount of coverage. Check with your agent to learn about any limitations, exclusions, and conditions that may apply to this optional coverage.
3. Foundation Coverage
Your home's structure is covered under your basic policy but is limited to named perils. Adding this optional foundation coverage will help to cover you from additional perils such as seepage or leakage of water or steam from a plumbing, heating, air conditioning, or automatic sprinkler system. Many homeowners are left to their own devices if their home suffers damage caused by one of these perils without Foundation Coverage, so make sure you’re covered.
4. ID Theft
“No, I did not try to purchase that $1,000 TV.” With criminals constantly implementing new ways to hack your computer and personal information, it’s important to protect your identity. Many optional ID Theft coverages offer $25,000 to pay for expenses incurred as a result of identity theft. Theft Expense and Resolution Services Coverage is typically inexpensive and can help offset the this common threat.
5. Water Backup
While a typical homeowners insurance policy will cover water damage as a result of discharge or overflow from plumbing, heating, air conditioning or household appliances, did you know that a typical homeowners policy won’t cover water damage caused by backups in sewers or drains? Water Backup optional coverage can help cover the cost of replacing damaged items caused by these perils. Talk to your agent about different options available for your home!
Wondering if optional coverages are right for you? Speak with a local Lighthouse agent about the best optional coverages available for you!