Every home owner has a home owners’ insurance policy. This is mainly because mortgagors require it. Apart from taking out the basic insurance most home owners are not even aware of the items that are on the exclusion list of their policy.
One thing you must bear in mind is that the higher the risk of an event occurring, the higher the likelihood that it would be on the exclusion list.
The home owners’ insurance policy covers the protection of your home and the contents. There is a specific amount that would be paid on each item in the event of loss or damage.
You need extra coverage for items that the maximum amount paid out is less than the value of the item.
Some of these items include the following:
1. Arts or antiques. You have the option of insuring your arts or antiques per item or get a special rider that increases your home’s content coverage. It may surprise you to know that separate insurance for art pieces are not really expensive. You can get coverage for about 25cents per $100. Any coverage you have a special rider on would not count against your overall content coverage.
2. Home Office Equipments. If you do business from home, you would need to have a separate coverage for all the equipments you use for the business. If a client is injured while he/she is on business in your home, your home insurance policy may not cover the liability. You should bed able to get in-home business coverage for as less as $300per annum. This would provide liability protection in case a client is injured in your home and also increase the coverage of your office and business equipment.
3. Oriental Rugs. It is not unheard of that a pipe burst in the house and damaged a very exotic oriental rug. In most home insurance policies, you are not covered, so you cannot get reimbursement. In some cases where you get reimbursed, it is not usually more than $5,000 per run or $10,000 at the max. A rider for an oriental rug would cost about $1 per $100 for coverage. This would cover the cost of the rug in case of theft or some damages as specified in the policy.
4. An Older Home. In most cases, home owners’ insurance policy does not cover the cost of rebuilding older homes to the meet new code requirements. Laws change and your older home may need to be rebuilt with more recent fire safety measure or sturdier foundations. Most policies would only cover the rebuilding of the home as it was originally. Code coverage would cover the additional cost of building the home to meet new requirements.