Is Your Basic Homeowners Insurance Enough?

Most probably you already have a homeowner insurance that would cover your losses in case of fire, storm, theft or other disasters. But take the time to examine it. Your policy might have exclusions you did not know or you might need to buy additional insurance coverage.


Home Insurance Policies

Most homeowner’s insurance policies purchased by homeowners may be classified as basic. They cover what homeowner’s insurance products are supposed to cover, which are generally the loss of the house or damage to the house in case of storms, fire, floods, robbbery or other disasters. They also cover owner’s liabilities in case of accidents that happen within the premises. They also pay for your accommodation expenses while you live in a hotel or motel while your house is being repaired.Spacer

But these basic homeowner’s insurance policies have limitations. Almost always, as you examine them, there are things of value that are not covered. Also, there are kinds of disasters that are always covered in basic homeowner’s policies in certain states, but are not covered in basic homeowners policies in some states due to the extent of the risks.

In Florida, where hurricanes have battered not only homes and families but also insurance companies, hurricane insurance policies are oftentimes separate from regular homeowner’s insurance policies. Similarly, in some regions of California which have been battered by forest fires, fire insurance is typically separate from regular homeowner’s insurance policies.

Here are three special homeowner insurance policies that you can add to your basic policy:Consumer Homeowner’s Insurance Policy

This type of homeowner’s insurance covers you against negligence claims or lawsuits in case of damage to property or injury to other persons while they are inside your premises. Examples of covered incidents are when your guest is bitten by your dog, your visitor slips and falls and gets injured and your child throws something that hurts your neighbor. Your policy will help you pay for their medical expenses. However, if you have a home business, injuries and other liabilities are not covered if these incidents arise from your business operations.Property Damage Insurance Coverage

This home insurance type covers specified structures which are not attached from your main house, such as your tool shed, garden house and detached garage. You need this type of insurance if your basic home insurance policy specifically excludes these detached structures.Home Contents Insurance

This type of house insurance covers valuable personal belongings, such as jewelry, precious antiques, silverware, expensive chinaware, guns, rare books, rare stamps, other collections of rare objects and antique furniture. Research the Internet on the current prices of your valuables to help you in establishing your desired amount of insurance.

Lastly, there are things you can do to reduce the cost of your homeowner insurance coverage. Install inexpensive but effective preventive systems to reduce your risks. These include installing double firewalls that protect your house from fire risks, security systems that protect your from robbers and removing wood piles that increase your fire risks.