Home insurance coverage is something every homeowner should have. However, the standard option isn't enough for everyone, and there are homeowners who need something extra. For example, you may need additional coverage if you fall under any of these four categories of homeowners:
You Run a Business At Home
It is estimated that approximately 69% of US entrepreneurs start their businesses at home. Some of these businesses never leave home. Examples of businesses you can successfully run from home include writing, bakery, flower shops, bicycle repairs, and many others. If you run any business at home, you are one of those whose needs cannot be met by standard homeowner's insurance coverage.
This is because the standard coverage doesn't protect you from liabilities that may arise out of your business operations. It also doesn't cover damage to any of your business inventories. For example, the coverage won't come to your rescue if your commercial oven burns down.
You Own Expensive Item
Standard homeowners insurance covers both your house's structure and its contents, but the content coverage for expensive items usually has a relatively low limit. For example, your stolen jewelry may only be compensated up to a limit of $1,500 if you only have standard coverage. Therefore, if you own expensive items such as jewelry or antique collections, you aren't fully covered if the standard coverage is the only one you have.
You Regularly Rent Out a Room or Two
Renting out a spare room in your home is a good way of earning much needed additional income. If you have an unused garage, spare bedroom or an unused basement, you can rent them out to others who need them. However, don't forget that your standard home insurance coverage will not come to your rescue if one of your tenants damages your house's structure.
You Own Multiple Attractive Nuisances
An attractive nuisance is anything that kids find attractive but can cause them serious injuries. Examples of attractive nuisances include unused wells, swimming pools, trampolines, used automobiles, and similar things. Any child who gets injured by an attractive nuisance in your home has the right to sue you for damages. Your standard home insurance coverage does protect you from such claims, but the limit may not be enough if you have several such attractive nuisances in your home (meaning you face a high risk of getting sued).
In short, standard home coverage is a good start, but it may not be enough. Talk to your home insurance agent to help you understand which additional coverage may be necessary for your home.
Share12 September 2017
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