Every homeowner's insurance policy is different, so you can customize the coverage you want and need. Your policy should contain coverage for your home structure and the things inside, but is this all you need? Many home insurance agents recommend adding a few types of coverage to have more protection. Here are three types you might want to add to your plan.
Additional Living Expense Coverage
The first type you should add is additional living expense (ALE) coverage if you do not have it already. Many companies offer this coverage with standard policies, but you might want to ask to make sure. ALE gives you protection if you lose your home to a covered peril. For example, suppose a fire broke out in your kitchen, forcing you to move out for a few months. Your ALE coverage will pay you for the additional expenses you encounter while you are living elsewhere. It covers the extra costs for rent or hotel fees, food, laundry expenses, and more. If you did not have this coverage, you might encounter many extra expenses during this time.
Sewer Line Coverage
The second coverage to consider adding is for your sewer line. A sewer line that breaks can lead to significant damage, problems, and costs. When you buy a plan that protects your sewer line, you can file a claim with your insurance company if you experience an issue involving your sewer line. The insurance company would compensate you for the damages you experienced from the event, and you might only have to pay a deductible in exchange.
Riders for Assets
The final coverage to add is riders for assets that might not be covered under your personal property coverage. A rider is an add-on to a policy, and it is vital to ask your agent about this when purchasing insurance coverage. Your personal property coverage might provide $100,000 of coverage, but it has limits. It typically only covers standard items that people own, and it excludes expensive items. For example, if you have $10,000 of jewelry in your home, you will need to add a rider to protect these items if you want to receive compensation for their full value.
If you have these coverage types, you might feel safer knowing you are fully protected. If you have questions about coverage or need a home insurance quote, contact a local homeowner's insurance agent to learn more.