You May Want Additional Home Insurance If...
Every homeowner knows that at least a basic home insurance policy is a must. However, you also need to know exactly what it does and does not cover so you're not caught by surprise if something happens. In fact, based on your individual circumstances, you may very likely want to buy additional coverage that isn't automatically included in general policies. Here are three examples of situations that may warrant extra protection.
1. You live in an area prone to natural disasters.
While many types of weather are covered under general policies, certain natural disasters, such as earthquakes and hurricanes, are not. It may seem like those are events that should automatically be covered, but this way people who don't need the coverage don't get stuck buying it. You wouldn't want to pay for hurricane coverage if you live in Montana, for instance. So be aware of what types of events are more likely to occur in your area. If you're in Florida, you might want to look into sinkhole insurance. If you're in California, earthquake insurance would be wise. In some areas of the country, you may even be required to have flood insurance, so make sure you know what laws are in place when you consider your home insurance options.
2. You own extremely valuable items.
A general home insurance policy does cover many of your belongings in the case of a robbery or damage done to the home. However, there is a limit to how much a basic policy will cover. If you have extremely valuable items kept in your home, such as jewelry or art worth thousands of dollars, you will likely want additional coverage for those items so that you're not paying straight out of pocket to replace them.
3. You have an older home.
Building codes and standards are constantly changing to make safer structures for residential dwellings. An insurance policy is designed to replace exactly what you've lost. However, if you have an older home and safer roofs are now available or your wiring no longer holds up with city ordinances, you may have options to purchase an additional insurance that will allow you to not only replace what you lost in a damaging event, but upgrade it to be safer as well. This is a smart choice, as it would be something you'd want to do down the line anyway.
These are only three examples of the many situations in which buying additional home insurance would be wise. You don't want to pay out-of-pocket for things that could've been covered. Talk to a home insurance provider for more information about what additional coverage best fits your personal circumstances.
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