There is so much to consider when choosing an insurance package for your home. With so many options available, this should make it easy, right? Not exactly. There is so much to understand about the different types of home insurance coverage. Worse, there are things that you think your insurance is covering but actually isn’t.
This can actually make this task feel much more daunting and typically requires a professional that knows the ins and outs of different coverage options.
What To Know About Different Types of Home Insurance Coverage
Damage to House
Your coverage to your house will only go as far as your policy allows. For example, if your house burns down, but your policy allowed for $200,000, then you will only receive up to that amount.
Personal Property
This covers the damages to your personal property, think of your clothes, electronics, and your furniture. If something were to happen to these items, you will receive coverage up to the dollar amount set up in your policy. Personal property insurance is very common! Whether you own or rent, you’ll have to get personal property insurance. This covers the property if something were to happen, such as theft or fire.
Comprehensive Personal Liability
Comprehensive personal liability covers you against a lawsuit. If a guest hurts themself while on your property and wants to sue you, your insurance can cover those expenses. For example, if someone breaks their ankle on your trampoline and sues you for medical payments, your insurance can cover you so you are not paying out of pocket.
Jewelry
Most insurance policies have a specific “sub-limit” for jewelry. However, there may be a limit to the amount of coverage for any individual piece of jewelry. If you have valuable jewelry, it is best to “schedule” it on your policy at a value that is decided by both you and your insurance company. If the jewelry is scheduled, it is also covered for something like a mysterious disappearance of an item. An example of a mysterious disappearance would be like if you were to take it off at the gym and accidentally leave it behind.
What Will Affect Home Insurance Coverage
Your Dog’s Breed Could Affect Coverage
There are some insurance carriers that have an “ineligible breed” list. If your dog is on that list, your home is not eligible for coverage with that carrier. We know that there are friendly dogs of all breeds, and your dog may be the friendliest pup around but there are certain breeds that are more inclined to cause significant damage if they were to bite someone. It’s not your dog that is being judged, but the insurance sees them as a “risk” that the breed may present statistically. That is a risk some insurance carriers elect to avoid. There are some carriers that do not have a breed list, so assuming your dog does not have a history of aggression or biting, you should still be able to find coverage for your home.
Common dog breeds that are affected are:
- Pitbulls
- Rottweiler
- Doberman Pinscher
- Chow Chow
- Akita
What Isn’t In Home Insurance Coverage?
Car In the Garage
Your homeowners insurance will not cover your vehicle. Your car, even if it is parked in your garage, needs to be covered by auto insurance. While some insurance carriers may have different guidelines, the vast majority of home policies exclude any vehicles from coverage, even if it is parked in your garage. One common exception is that homeowners insurance will cover your personal property if it is stolen out of your vehicle. This can vary by policy, so be sure to get this information from your policy provider.
Water Damage or Flooding
A select few carriers now offer an optional endorsement to add flood coverage. However, with most carriers, the only way to obtain coverage for flooding is to purchase a separate flood policy. Nearly all homeowners’ policies specifically exclude coverage for flooding. This can include anything from a flash flood to water accumulating in a window well and seeping into the home. Make sure you know exactly what your home insurance is covering, and whether or not you need to find your own flood policy.
Home Business Coverage
If your homeowners’ insurance will not extend coverage for your home business, you can look into a commercial policy to cover that risk. This can also depend on both your insurance provider, as well as the type of business. Every insurance carrier will have its own specific guidelines, but it is typically easier to find insurance for home businesses if there is not frequent foot traffic involved.
Insuring Your Home With Different Types of Home Insurance Coverage
Picking the right insurance coverage can seem complicated, but that’s where we come in. Connect with ONIT and our team of professionals can give you every option available, from multiple providers to assure you get the best coverage at the most affordable rates. We understand that there are questions about the different types of home insurance coverage, and that’s why we’re here! Call us today at 1-833-433-0331, or contact us here for a free quote.