Reviewing Additional Insurance Coverages
Anyone who has had to fill a gap with insulation knows a little extra doesn’t hurt, especially when it prevents holes in the protection from your home. Reviewing additional insurance coverages adds up to filling a hole that may exist that could cause financial pain.
When it comes to home insurance, standard coverage may not always be enough to protect you and your belongings. That’s why additional coverage proves more important. These optional protections can provide you with added peace of mind and financial security in the face of unexpected events or damages.
Whether you’re a homeowner or renter, it’s important to understand the various additional coverages available to ensure you have the right level of protection for your needs.
From personal liability coverage to identity theft protection and water backup coverage, these optional coverages can help fill in gaps in your standard policy and provide the necessary safeguards for your home and personal belongings.
Let’s review some of the common additional coverages available and explain how they can enhance your homeowners insurance policy.
Flood Insurance
Flood insurance is a crucial component of home insurance policies that provides coverage against flood damage. Many homeowners mistakenly assume that their standard policy covers flood damage, but in reality, most policies don’t include this type of coverage.
Floods pose significant risks to homeowners, especially those living in flood-prone areas or near bodies of water. Without the protection of flood insurance, homeowners may face substantial costs in repairing and replacing damaged property, as well as potential high expenses you get with temporary relocation.
Though your standard homeowners policy can provide additional living expenses when damage or demolition of your home happens, a flood makes the situation much more complicated. Having protection above your Additional Living Expenses in your homeowners insurance policy gives you the best protection.
When a flood occurs, it can cause extensive damage to the structure of the home, as well as personal belongings and valuable items. The cost of repairing or rebuilding a flooded home can quickly skyrocket, leading to financial strain. Sometimes, homeowners face potential bankruptcy without flood insurance coverage.
Replacement Cost Coverage
Unlike Actual Cash Value coverage, which factors in depreciation when reimbursing policyholders for damaged, destroyed, or stolen items, Replacement Cost Coverage ensures that policyholders receive full compensation for the cost of replacing their belongings with new ones.
Under Replacement Cost Coverage, policyholders receive reimbursement based on the current market value of an item, regardless of its age or condition at the time of the incident. This means that if someone steals a policyholder’s television, they would receive the full cost of purchasing a new television of similar make and model, rather than an amount reduced by depreciation. This can be especially important when it comes to valuable items or costly belongings.
Replacement Cost Coverage can provide peace of mind, knowing that no significant financial burden will fall on policyholders to replace their belongings.
Although it may result in slightly higher premiums, the benefits outweigh the extra cost.
Personal Liability Umbrella Policy
A personal liability umbrella policy offers additional coverage and benefits beyond the limits of a standard homeowners insurance policy. This policy provides an extra layer of liability protection to help safeguard assets in the event of a lawsuit.
While standard homeowners insurance includes personal liability coverage, it may have limitations on the amount of protection it provides. In contrast, a personal liability umbrella policy offers higher coverage limits, typically starting at $1 million and going up to $5 million or more. This additional coverage can help protect assets such as homes, cars, savings, and investments.
The personal liability umbrella policy covers various scenarios, including property damages, personal injury claims, and legal fees. In the event of a lawsuit, the policy can help cover the cost of legal defense and any settlement or judgment awarded to the injured party.
This coverage provides protection in cases where the homeowners prove legally responsible for injury or property damage that exceeds the limits of their standard homeowners insurance policy.
Obtaining a personal liability umbrella policy is a wise decision for individuals looking to protect their assets and provide an extra layer of liability coverage.
Scheduled Personal Property
Scheduled Personal Property Coverage is an additional coverage option available in homeowners insurance policies that provides extra protection for valuable items that may exceed the coverage limits of standard personal property coverage.
While standard personal property coverage typically includes protection for belongings such as furniture, clothing, and electronics, scheduled personal property coverage offers higher coverage limits and protects items considered particularly valuable or unique.
Examples of valuable items that may be eligible for scheduled personal property coverage include expensive jewelry, high-end artwork, collectibles, antiques, firearms, and musical instruments. Often subject to specific appraisals, these items and their value should remain separately listed in homeowners policies.
This additional coverage ensures that if damage, theft, or loss of these valuable possessions, the policyholder will receive compensation up to the appraised value rather than experiencing limits to their coverage of standard personal property coverage.
With scheduled personal property coverage, homeowners can have peace of mind knowing that their prized possessions have adequate protection, regardless of their value, under their home insurance policy. We advise consulting with an independent agent to determine the specific coverage needs for valuable items and to ensure they are adequately protected.
Watley Insurance Group is Here to Help
Watley Insurance Group is here to help homeowners in the Ark-La-Tex region review their homeowners insurance policies right from our home base in Shreveport, Louisiana. Our insurance agency understands the importance of having the right coverage to protect your most valuable asset.
As an independent insurance agency, we work with a variety of insurance carriers (a.k.a an insurance company) to make sure our clients have access to the best coverage possible with competitive pricing.
We can help you understand the different types of coverage available, such as dwelling coverage, personal property coverage, and personal liability coverage.
Additional Coverages For the Unexpected
We also offer additional coverages for those unexpected situations. For example, we can provide flood insurance, which proves crucial for homeowners in the Ark-La-Tex region known for its unpredictable weather patterns. We also offer water backup coverage to protect against damages caused by sump pumps or sewers.
At Watley Insurance Group, we go beyond just providing standard coverage. We understand that each homeowner’s needs are unique, which is why we take the time to review your policy limits and suggest additional coverages that may be beneficial. Our help protects your valuable items, such as musical instruments or valuable collections, through additional endorsements.
We commit to making the insurance process as convenient as possible. With our online portal, you can easily request an insurance quote based on your specific needs and zip code. We also offer multi-policy discounts, allowing you to save on your homeowners insurance by bundling it with other coverage, such as renters or earthquake insurance.
When it comes to protecting your home and belongings, trust Watley Insurance Group to provide you with an insurance provider offering comprehensive coverage and exceptional service, especially when it comes to making an insurance claim. Contact us today for assistance in reviewing your home insurance policy.
We offer a variety of other coverages other than homeowners insurance. If you need to protect your business, auto, life, etc., we can help you there too.
