Optional Homeowners Insurance Coverages

Additionally, a standard homeowner's policy will reimburse you for hotel and food expenses if you are not able to live in your home while repairs are being done to your home; this is also called a "loss of use" claim. So now you might ask, "what is considered an optional or additional coverage and is it something I need?"

Additional Homeowners Insurance Coverages Available

There are several additional homeowners insurance coverages available (called "endorsements"), which can be added to your basic homeowner's policy at an additional cost:

Flood Insurance Coverage—floods damage is not covered under your standard homeowners insurance policy. Not all floods happen in flood prone areas so flood insurance 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 homeowners insurance policy.

Identity Theft Coverage—this relatively new type of coverage is available for homeowners who are concerned about the possibility of having their identity stolen by one of the many full-time scammers, hackers, and thieves.

Expensive Jewelry Coverage—most basic homeowner's insurance policies will cover a certain 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 policy that will cover the item specifically.

Business Endorsements—there are two main types of endorsements that can be added to a policy for people who work at home: the Business Pursuits endorsement for those who don't own the business but happen to work at home, and the Permitted Incidental Occupancies endorsement, which covers the homeowner who does own the business being operated from his/her home (this endorsement includes liability coverage).

How Do I Know if I have Duplicate Coverages?

In some cases you may be purchasing an additional coverage for an item that is already protected by your basic homeowner's policy. For example, you might get additional theft coverage for a small boat and it just so happens that it is already covered by your basic homeowners policy. The only way to assure that you are not duplicating coverages is to examine your policy and ask your insurance agent in-depth questions. It's important that you look at your policy's claim limits to determine if you really are duplicating coverage for the item.

The best way to know that you have the proper homeowners insurance coverage is to work with your insurance agent and recognize all the perils of where you live.