Insurance is a homeowner’s most important investment. For many homeowners insurance is a basic safeguard for their greatest financial investment in the year: their home. It provides coverage for property damage or owner liability and defends the resident from legal suits that arising out of an accident at his property. However, such comprehensive protection may not be always offered by standard homeowners insurance policies.
Homes today are of all shapes, sizes and in every conceivable location. For homeowners in this new world of real estate coverage there’s a special policy designed to meet their needs and protect against specific perils. In this article, we explore the world of specialty insurance options for homeowners who require something more than just standard protection.
Understanding Standard Homeowners’ Insurance
Before you read on to explore specialized insurance options, you should know what protection is offered by ordinary homeowner policies. Most standard policies provide coverage against risks such as fire, theft, or some kinds of natural disasters (like hurricanes and earthquakes), depending on where they are located in the United States.
In addition, such policies normally include liability coverage, which protects homeowners from lawsuits arising from property damage or bodily injury to others suffered while within the insured’s premises. Although homeowners insurance provides vital cover, it is still important to understand its limitations and consider additional policies to cover all aspects of risk management.
Specialty Insurance Options
Flood Insurance: Standard homeowners policies do not typically cover flood-damage losses, and can thus leave homeowners at risk for the catastrophic results of flooding. For those who own homes in flood plains or by bodies of water, it is essential to pick up some form of flood insurance–either through the National Flood Insurance Program (NFIP) or private insurers.
Earthquake Insurance: In the same vein as flood insurance, homeowner’s standard policies do not cover earthquake damage. For those who live in seismic areas, earthquake protection can provide them with vital protection against damage suffered because of the intense shaking of a quake. Besides helping to pay for anything that is lost or damaged inside one’s home, it also covers outlays incurred while living elsewhere due to earthquake-related damages.
Cover for Valuable Items is Valuable items coverage: Personal possessions are included in standard policies, but they can’t cater for high-value objects such as jewelry, art, antiques and collectibles. Valuable items coverage or scheduled personal property endorsements offer added protection to these assets, which may include protection from theft, loss or damage without being subject to deductibles.
Home Business Insurance: Homeowners operating businesses at their homes may find that standard homeowners insurance does not cover business-related liabilities or property damage adequately. Home business insurance provides cover for business equipment, inventory and liability risks plus business interruption expenses.
Empty House Policy: Properties left unoccupied for long periods of time as a result of renovations, seasonal occupancy or sale may need special empty house insurance coverage. This helps guard against risks such as vandalism, theft and property damage during times of inactivity, supplementing the regular homeowner’s policy in effect then.
SewerBackup Coverage: Insurance carriers may omit breakdown of sewers and sump pump failures from the standard homeowner’s policy. Sewer backup relief offers payment for repair costs and cleanup, as well as compensation for damage to property incurred as a result of incidents where sewage is involved.
Homeowners must assess their particular needs, the characteristics of their property and its location when contemplating stand-alone policies. Factors such as climate, proximity to water, the value of property or lifestyles adopted can influence which stand-alone policy is best suited for them.
In addition, homeowners should review their present homeowner’s policy to see whether there are any gaps in coverage that will require additional kinds of specialized insurance. Insurance representatives or brokerage companies specializing in homeowners’ insurance can offer valuable advice and assistance on navigating the intricacies associated with specialized home insurance options.
Summary
Traditional home insurance is enough to protect the home and property from liability, but if you look for insurance tailored to individual needs of homeowners, flexible one or two extra layers of protection. Valveable items, flood insurance and earthquake protection for instance—specialized insurance options tackle extra risks and bring peace of mind to homeowners.
For homeowners trying to find their way around the confusing labyrinth of coverages and premiums, customizing each policy to fit your own unique needs is crucial. By understanding the particulars of specialized insurance and obtaining good advice from insurance specialists, homeowners can live out their dreams of life with multiple layers through risk management. And they’ll do it on something that is both pre-eminently their castle–and immune from untoward disaster or sudden ruin.
