Having a home insurance policy doesn't necessarily mean your home and belongings are protected against all types of losses. A homeowner’s insurance policy offers basic protection from the most common disasters but your policy might not cover some risks associated with your location or all your possessions.
Here are some of the things that a basic homeowner’s policy does NOT cover and what you can do to protect your property:
Flood insurance is mandatory when your home is in a high-risk area for flooding. Even if you live outside a high-risk area, don't make the mistake of assuming you'll never experience a flood. Nearly 20% of flood insurance claims come from areas of moderate to low risk, according to the National Flood Insurance Program. Whether it's a flash flood or just a few inches from a storm, water can cause massive damage to your home and belongings.
Basic homeowners insurance policies don't offer earthquake coverage. In many states, insurance companies offer earthquake coverage that can be added to your policy. Anyone who has seen the aftermath of an earthquake understands the devastation one can cause. The extensive shaking and cracking can demolish entire buildings, destroying your home and possessions. If you live in an area prone to earthquakes, consider strengthening your policy with earthquake coverage.
Your homeowner’s policy provides limited coverage for business equipment. Additionally, you are not covered for liability related to your home business — if, for example, someone gets food poisoning through your catering business or if a student visiting your home trips and breaks an ankle while leaving a piano lesson. If you run a business from home or have expensive office equipment, you may need additional coverage.
Valuable Personal Property
Homeowner’s policies can offer sufficient coverage for most personal property, but there are limitations you should be aware of. Valuable personal property (VPP) insurance can take over where homeowner’s policies leave off. VPP insurance can provide coverage for losses due to fire or theft. It also covers damage if an item gets lost — say a stone falls out of a ring or the ring falls down the drain. If you own valuable items such as artwork, jewelry, musical instruments, firearms, furs or silverware, consider getting valuable personal property insurance.
Broader Personal Liability
Homeowner’s policies offer limited coverage for liability protection. Given the litigious world we live in, an umbrella insurance policy can provide additional peace of mind. An umbrella policy helps protect you and your earnings if someone, such as a baby sitter or handyman, is injured at your home. It also helps provide protection if you (or a family member) are found liable in a serious automobile accident. This type of insurance can provide extended liability coverage beyond your home and auto policies. Consider shielding your personal financial assets with additional liability insurance.
Are you thinking of placing your home on the market? Let us give you some Tips for Selling Your Denver Home! At Bandy Homes, we will guide you through all phases of the home selling and home buying process in Denver. We can also help you to get started on relocation with our Denver Relocation guide and can show you some terrific homes in the Castle Rock area, including real estate in Founders Village and a wide variety of gorgeous homes in The Meadows. Our trusted professionals will be there to help you every step of the way!
Until next time,
Marianne Bandy, Team Leader
The Bandy Team
Keller Williams Park Meadows