A standard homeowner?s insurance policy is not going to provide your home with coverage for everything that could go wrong. Flood insurance is never included in a standard policy, and earthquakes are another named exception in most policies. Another point to be careful of is that your personal property is protected, both well enough and for a sufficient value to cover your potential losses.
Flood insurance may not always be available through the conventional home insurance market. If you are not able to purchase flood insurance from a commercial provider, contact the Department of Insurance for your state and ask about flood insurance for your location. In some regions, flood coverage is only available through insurance ?pools? in which all insurance companies must contribute into.
Earthquakes damage is usually excluded from home insurance coverage, but is available through the same channels as flood insurance. The local Realtors association may be able to help you find local insurers, and homeowner?s association members may have access to group coverage discounts.
Insuring Other ?Exclusions?
Not all exclusions will require you to purchase separate coverage. Contact your insurance company and ask them about ?riders,? a way to add different insurance coverage together in one policy. Having all of your coverage bundled together is the least expensive method.
Replacement Value Coverage
Read your policy carefully to make sure that your home and property are insured for replacement value, not actual cost value. The difference between those two coverage types could mean the difference between actually replacing a widescreen TV or just receiving a portion of the original cost, minus depreciation. Replacement value insurance is more expensive but it is a much broader coverage.
Your property is only insured up to a certain percentage of the total value of the policy. If you own more than a few thousand dollars in equipment, furnishings, appliances, clothing, decorations, jewelry or anything else in the home, you should consider insuring your property for a specific value. You will need to make a complete home inventory to provide to the insurance company.