The purchasing process for homeowners’ insurance can be tricky. There’s a lot to know in the insurance industry to avoid making costly mistakes.
Unfortunately, your base homeowners’ insurance policy likely won’t include all the protection you need in the event of a disaster. That’s why insurance companies offer add-ons, which are also often referred to as:
- Endorsements
- Floaters
- Riders
These additional coverages allow you to expand on your existing coverage where you expect to need it most. There are many different types of add-ons, but you likely won’t need them all. Here are some of the most common types of additional coverages:
Common Homeowners’ Insurance Add-Ons
Utility Lines
You don’t often see your home’s underground utility lines, but you’ll notice right away when something goes wrong. Your underground utilities include the following:
- Water
- Sewer
- Electrical
- Cable
- Gas
If your underground utilities are somehow disrupted, as the homeowner, you are responsible for fixing them. Tree roots and old age are some of the most common contributing factors for damaging utility lines, which are often elements you have very little control over.
Unfortunately, standard homeowners’ insurance policies do not cover damages to your underground utility lines. These repairs can easily become costly, which is why it can be helpful to carry additional coverage for your utilities. This coverage is particularly important if you live in an older home with outdated underground systems.
Flood Damages
Flooding is relatively common in Charleston, making this insurance add-on particularly important for homeowners in this region. Floods often occur without warning, which makes it challenging to prepare for such disasters.
If you live in a valley or other geographic low point, you may be at a greater risk of flooding. However, it’s possible for your property to experience flooding even if you don’t live in a flood-prone area.
Standard homeowners’ insurance policies usually don’t include flood damage, which makes this add-on particularly important in wet regions.
Valued Property Coverage
It’s wise to check the specific details within your homeowners’ insurance policy before purchasing additional coverages, but most plans have strict limitations regarding damages for particularly valuable possessions. If you have expensive property and assets that you want to be certain are covered in the event of a disaster, you may want to purchase additional coverage for your personal property.
Most insurance companies allow you to group your valued possessions as collections, or you can insure each item separately. Having this coverage may also help you reduce or eliminate your deductible, depending on your plan and the company your belongings are insured by.
The Importance of Homeowners’ Insurance Add-Ons
As you can see, homeowners’ insurance is quite complex. However, there is nothing more satisfying than knowing you are covered when disaster suddenly strikes.
If your home is damaged as a result of some sort of disaster that is not covered under your standard insurance plan, you will have to pay for the repairs out-of-pocket. As storms and other types of natural disasters become stronger and more frequent over time, it may be a good idea to add certain coverages that may not have been necessary 20 years ago.
The last thing you want after a catastrophe that damages your property is to have your homeowners’ insurance claim denied, leaving you to fend for yourself during such a difficult time.
Avoid the guesswork and spend the time sorting through the different insurance add-ons so that you know you are covered if anything bad should happen.
If you need help with your homeowners’ insurance claim, contact the skilled attorneys at Berthold Law Firm, PLLC with the details of your case by calling (304) 605-2040 or by filling out our online contact form.