3 Things Left out of Your Basic Home Insurance Policy
If you're a home owner or a renter it's a good idea to purchase a home insurance policy to cover your losses in case of theft or damage to your home. Home insurance can be as comprehensive or as basic as you need it to be.
When purchasing a home insurance policy, you start with the basics such as the structure of your home and property. This includes the yard and the garage as well as the value of all your personal belongings inside the home such as furniture and electronics. Personal items such as clothes and appliances should also be included in the value of your basic home insurance policy.
When shopping around for quotes from different providers it's a good idea to have a precise (as much as possible) value of all these items so you can compare apples to apples.
After you've determined the amount of basic home insurance you need it's time to add on additional insurance for items and activities that are not included under your standard home insurance policy:
Your most valuable items
Personal belongings such as furs, jewellery and art are not covered in your basic home insurance policy. You will need to add additional insurance coverage - usually called all perils insurance - for these types of higher end valuables.
Your insurance agent will most likely inquire if you have these items and ask if you want to purchase additional coverage to protect them in case of theft or damage. If they don't ask about these items, mention that you have them in your home. The last thing you want is to have theft or damage and be unable to recoup the cost your valuables.
Your business activities
It's important to inform your insurance company if you run a business from your home - anywhere in your home, including the garage. Your business activities are not covered under your basic home insurance policy.
Be sure to mention if you have an equipment or other office supplies in your home. Don’t forget to specify how much space in your home is committed to the business. You should also report the annual income generated by the business. This will help the insurance company determine how much additional insurance you need on your home insurance to cover the loss of business activity in case of an unfortunate event.
Additional structures on your property
Generally, basic home insurance covers your primary property as well as the structures attached to it such as your garage. If you have additional housing on your property, such as a guest house or a pool house, the physical structure as well as the contents inside may not be included in your basic home insurance policy.
Be sure to tell your insurance provider if you have - or if you've added - new dwellings on your property, as they require additional insurance.