Though your home is meant to be your safe haven, your fortress in the midst of the chaos of the world around you, it’s still important to plan for times when even your fortress is breached. Insurance coverage is important because it ensures you’re able to get back on your feet quickly after a tragedy strikes. Without it, you’ll be faced with the effects of the loss itself in addition to the monumental task of paying for the damage. To help you protect your home, then, here are a few of the most common insurance coverage options for homeowners.
If you live in a designated flood plain, then you are required to have flood insurance. Losses resulting from a flood are not covered under a regular homeowner’s insurance policy. Considering that the average loss from a flood is close to $100,000, it’s easy to see why this type of insurance is important. Floods can wreak havoc on every part of your home and the last thing you need is to try and figure out how to pay for repairs to your home while you’re trying to salvage what’s left of your home.
Though homeowner’s insurance isn’t required in every case, owning a home without this crucial coverage exposes you to serious risk. Whether it’s a fire, a hailstorm, or some other type of damage-causing event, homeowner’s insurance frees you from the worry of how to pay for necessary repairs. Homeowner’s insurance also protects you if people are injured while on your property, ensuring that you don’t become personally liable for their medical bills.
Though most of the contents of your home are covered under your standard homeowner’s insurance policy, if you have certain items that are exceptionally valuable, it’s a good idea to cover them with a separate policy rider. Riders are additional contracts that cover the loss or damage of specifically named items, such as an engagement ring or family heirloom.
Typically, you’ll need to have these items appraised prior to obtaining a policy. This ensures you don’t undervalue your treasured items, guaranteeing their replacement if the unexpected occurs. If your engagement ring comes from a reputable distributor, you will have a good idea of its value. If you want to ensure jewelry or other prized possessions passed down in your family, be sure to have the value properly assessed.
If you run a business from your home, such as a daycare or carpentry shop, it’s important that you carry additional insurance policies to cover these activities. Homeowner’s insurance policies typically don’t offer enough coverage to cover you in case of a loss during the course of business. To protect yourself and your personal assets, then, it’s important that you take out separate business policies, treating your business as though you owned an off-site building in which you did your work.
When it comes to insurance, it’s important to stay up-to-date. If you have a major change in your life, it’s important to check with your insurance advisor to see if you need to update your insurance coverage, as well. Don’t forget, this includes a major career change, a new baby, marriage, divorce, and any other life changes. If you aren’t sure if your change affects your insurance, just make to call your provider and ask. This will ensure you always have enough coverage to take care of your needs should you ever find yourself the victim of some type of loss.