Homeowner’s policies regularly provide other types of coverage, including off-premises theft protection and unauthorized use of your credit cards. Make sure you understand which provisions are included in the standard coverage you elect to purchase and which might require supplemental premiums.
Supplemental coverage
Homeowner’s policies cover specific risks. Depending on what you own and where you live, you might need to supplement your policy with special coverage.
Flood insurance
Homeowner’s policies do not cover flood damage. The National Flood Insurance Program (NFIP) offers flood coverage in many areas. Insurance Cleveland Agency sells NFIP flood policies, and one of our knowledgeable insurance agents can help you get information about the program in your area. Check with your mortgage lender to see whether your home is in a special flood hazard area. In these special cases, a borrower may require you to purchase flood insurance.
Earthquake insurance
If you are concerned about earthquakes, you can get coverage with a separate policy.
Extra coverage (Endorsements)
It may be necessary for you to purchase more coverage than your policy provides for your personal valuables. For an extra premium, you might be able to buy endorsements that expand or increase the coverage on these items. Some of the most common endorsements cover jewelry, fine arts, camera equipment, coin or stamp collections, computer equipment, and radio and television satellite dishes and antennas.
Personal umbrella liability insurance or Excess Personal Injury Protection
If you own a home, Attorney Michael Dobronos strongly recommends you purchase an umbrella policy that covers (like an umbrella) your home and cars. He further goes on to explain that this insurance also covers other unique situations, like sports related injuries, and items on your property, such as trampolines, dirt bikes, all terrain vehicles (ATVs), hot tubs, and swimming pools. Again, an umbrella policy is maximum amount of coverage to protect your personal assets from being exposed to litigation. More important, this coverage would pay your attorney fees and court costs, if you are sued. If you own a home, you should not be without this coverage.
An umbrella policy provides more liability coverage than a homeowners policy provides at a separate cost. Both your homeowner’s and automobile insurance policies provide some coverage should you get sued because of damage to someone else’s property or injuries they sustain as the result of an accident. However, in today’s world, the limits placed on the insured in both these policies, is no longer enough. Today, many times a broken leg brings the plaintiff $80,000. For more serious injuries you never know what a jury is going to do. Therefore, more and more people are taking out Umbrella policies or Excess Personal Injury Protection policies. These policies pick up where your homeowner’s or automobile policy leaves off at a reasonably inexpensive price. If you own a home and a couple of cars, you will probably pay about $300 – $400 for the policy and have coverage for about $1 – $2 million. The policy is worth giving up a few meals out to have this kind of coverage.
This type of policy will also protect you against claims such as: libel, slander, false arrest, wrongful entry, invasion of privacy, and similar claims. There is also no territorial exclusion. And it will protect you if someone else’s property, which is also in your care, is damaged.
“Another benefit of having liability insurance is that part of the insurance company’s obligation is to provide a defense for you if you are sued by another party” adds Cleveland attorney Oleh Mahlay. “Although the lawyer is actually representing your interest in these legal actions, the insurance company selects and pays the legal fees associated with any lawsuit.”
Higher deductibles, lower premiums
Deductibles allow you to cut the cost of your insurance, by assuming some of the risk. If you have a $250 deductible on your homeowner’s policy, you agree to pay $250 to cover any losses, before the insurance company pays the rest of your claim. By increasing that deductible to $1,000, you might save 20 to 30 percent on your premiums. By talking with your insurance agent, you can determine whether lower deductibles or lowering your premium is right for you.
Bad credit could cost you
Insurance companies look at financial situations of clients when they apply for a policy. Insurers have found that people with financial problems pose a greater risk. Some insurance companies might charge you higher premiums, if you have problems with your credit history.
An insurance score is different from a credit score. An insurance company uses credit information, together with your insurance history, to predict whether you are more or less likely to file a homeowner’s claim. Insurance companies believe that this allows them to provide insurance to more people and to offer it at a lower cost to those who qualify.
The above article is meant to give a general overview of insurance policies; exact coverage and terminology could vary by insurance company. Please refer to your policy for exact coverage details and terminology.