Purchasing a home is one of the most exciting times in a person’s life. Unfortunately, the process of buying a home can be very involved. Perhaps the most important thing you can do when buying a home is purchasing good insurance to protect your investment. Many people pay little attention to what their homeowner’s insurance policy actually covers. They often don’t realize that their basic plan may not meet all of their insurance needs. There are many home insurance add ons that buyers need to be aware of when making this major purchase. While these add ons may cost a little more in the present, they could potentially save you big money in the future.
Top Add-ons for Home Owners Insurance
Home Emergencies Coverage
Grandmother used to say prepare for a rainy day. She must have been a homeowner because the reality is homeowners will have emergencies. These problems are usually expensive to fix. This coverage will replace certain items when they are not working or get a qualified expert to fix the problem. This add on is designed to provide coverage for things like burst pipes or a boiler breakdown. Homeowners who have this coverage gain access to a 24-hour emergency helpline, allowing them to get help quickly and easily. Depending on the plan this coverage can take care of emergency callouts, repairs and even labour costs.
Accidental Damage Coverage
Accidents happen. If you are a person who is a little clumsy or just have bad luck this is insurance add on you may want to consider. Accidental coverage typically pays out random accidents like spilling red wine on a white sofa or accidentally step through the ceiling when trying to work in the attic. Put simply accidental damage insurance provide coverage for unforeseen or unintentional events that cause damage to your belongings. There are some exclusions but this coverage can help with a variety of items including T.V.’s, computers, furniture and even mirrors. If you have children this is even more of a reason to opt for a home and contents insurance.
This one may sound a little out of place, but it is anything but. If you are middle-age and spend time on the golf course this is a plan to consider. This plan will pay buyers in the event your clubs are being damaged or stolen. You can also receive payment for your membership fees as well as any tournament entry fees. This usually takes place when an injury prevents you from continuing to play. Most regular homeowners insurance does not cover golf cart accidents or other injuries as a result of playing this sport. Given the expensive nature of playing this sport, if you are a frequent golfer this is a plan to consider.
Coverage for Legal Expenses
Homeowners insurance policy almost never cover legal expenses. Do you have any concerns about having to make a claim or dispute it in court? If you get the Legal expenses to add on it will help rest easy knowing you don’t have to pay for the legal costs of pursuing a court case or a claim. Some homeowners policy will pay to settle a claim against an insured, but this can vary based on the insurer’s policy. They rarely, however, cover legal costs to defend the insured against the claim. Adding coverage for legal expenses can provide a sense of security in many circumstances.
Depending on where you live, this can be a big one. Standard homeowners policies cover disasters such as fires, lightning and hurricanes. They typically do not cover flooding. Flood insurance can be purchased from the same agent or company representative who provides you with your home insurance. For areas that are highly susceptible to flooding there is the option of purchasing Excess Flood Protection, which provides higher limits of coverage. How much and whether or not to purchase this add on will be determined by where you live.
This is another that can be location based. This coverage pays the homeowner in the event their home is damaged by an earthquake. Most standard homeowners policies do not provide earthquake coverage. The rate you pay for this coverage will vary based on location and earthquake probability. Most of these policies have a high deductible, which makes it great if the entire home is destroyed, but not useful if the home is merely damaged. This coverage does not cover some things that buyers might anticipate. It will not cover damages resulting from a fire caused by an earthquake or damage to vehicles, fences, pools and things like china and crystal If you are in an area that is susceptible to earthquakes it is important to do your research regarding this add on.
Making additions to your homeowner’s insurance policy can be crucial given your circumstances. It is important to do your homework and make an informed decision. It could save you lots of money.