5 Additional Home Insurance Coverages to Consider
InsuranceExperts.io
5 Additional Home Insurance Coverages to Consider
Homeowners often overlook crucial insurance coverages that could protect their most valuable asset. This article explores additional home insurance options that experts recommend for comprehensive protection. From flood insurance to extended replacement cost riders, these coverages can provide peace of mind and financial security in unexpected situations.
- Consider Flood Insurance for Peace of Mind
- Protect Against Sewer and Drain Backups
- Add Wildfire Coverage in High-Risk Areas
- Opt for Extended Replacement Cost Rider
- Loss of Use Coverage Safeguards Stability
Consider Flood Insurance for Peace of Mind
Flood insurance: While flood insurance might not be the most valuable additional coverage for everyone, it should be considered standard for people living in areas where flooding is a significant risk.
A flood can be absolutely devastating, and it's possible in areas where you wouldn't even expect there to be a possibility of flooding, as evidenced in the Carolinas this past year.
Flood insurance is not expensive if your risk of flooding is low. Therefore, it makes sense for people to buy it even if the risk of flooding where they live is low.
Protect Against Sewer and Drain Backups
One additional coverage option I found particularly valuable for home insurance is sewer and drain backup coverage. It's something many people overlook because it's not typically included in standard policies, but it can save you thousands if a backup ever occurs. Water damage from a clogged sewer line or heavy rainfall backing up into your basement can be devastating--not just in terms of repairs, but also in replacing damaged personal belongings. I recommend this coverage because it gives peace of mind, especially for homes with basements or older plumbing systems. It's a relatively low-cost add-on that protects against a high-cost scenario, making it a smart, preventative move for any homeowner.
Add Wildfire Coverage in High-Risk Areas
Where you live can influence the best kind of additional coverage to purchase. For me, for example, I live in an area with high wildfire risks. So, although most standard home insurance policies do provide some fire coverage, it's invaluable to have additional wildfire insurance. Something we are seeing a lot more of is insurers dropping this portion of their coverage from standard insurance policies, particularly in high-risk areas, so having additional coverage is often necessary.
Opt for Extended Replacement Cost Rider
One of the best coverages to get on a Homeowner's (or Condo) policy is the Extended Replacement Cost rider. This endorsement will increase your Coverage A amount to 150%. This can be valuable if there are unforeseen circumstances that increase the cost of reconstruction at the time of a covered loss. This could cover a contractor labor shortage, increased cost of materials, or other unexpected increased costs. It's not going to replace linoleum flooring with marble flooring, but it will help ensure that your property is rebuilt in a way that doesn't leave you with a big bill at the end.
Loss of Use Coverage Safeguards Stability
Joel Efosa, CEO of Fire Cash Buyer
"One often overlooked but incredibly valuable home insurance add-on is 'Loss of Use' coverage. As someone who works with homeowners in fire-prone areas, I've seen how devastating it is when a home becomes uninhabitable after a wildfire. Standard policies may cover the structure, but they don't always account for the real cost of temporary displacement—hotels, rentals, meals, and even commuting changes.
Loss of Use coverage gives people time to figure out their next steps without rushing into financial decisions they might regret, like selling below market out of desperation. I always recommend it to homeowners in high-risk regions because it adds a layer of protection that keeps families stable while they recover."
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