A basic homeowners policy is important, but on its own may not be sufficient when it comes to meeting all of your needs after an event that damages your home or property. While a basic policy will provide much-needed assistance, it simply may not be broad enough or valuable enough to meet your needs. As a result, supplemental endorsements to your policy may be required to ensure that you have the right tools to cover the cost of rebuilding your home and replacing your valuables.
The Cost of Rebuilding
Rebuilding a home that has been completely destroyed may be much more expensive than you realize. The cost of complying with current building codes and an increase in the cost of materials and labor can exceed the amount of your insurance pay out by tens of thousands of dollars. Insuring your home for actual cash value may result in you not receiving enough to rebuild your home. Instead, talk to your insurance agent about your home’s replacement value, extended dwelling coverage, building code coverage and other options.
Covering Your Valuable Items
Most homeowner policies provide a low limit of coverage for valuable items and its mostly for theft. If you have valuable items, you will want to have them appraised to determine their value. Expensive jewelry, pieces of art, collectibles, antiques, and other items that hold a lot of value over their face value will require a supplemental policy to ensure you are compensated for their full value if they are lost, damaged, or stolen. Some items may require their own policy, while collections may be covered by a single supplemental policy.
Pets are one source of liability risk that can’t be overlooked. Dog bites are one of the main types of liability a homeowner faces. Even though you may do everything within your power to control your animal, the risk will always be there. This is especially true if you have a high-risk breed. Pit bulls, Doberman pinschers, chows, mastiffs, and German shepherds fall into these categories. It is important to have adequate coverage in place even if your animal is properly trained and leashed while out in public.
Other Liability Concerns
Personal injury and property damage liability are also major concerns and are covered under most Texas homeowner policies. Slip and fall accidents, bumping into oddly placed objects, or tripping over a crack in the sidewalk are all accidents that can result in expensive personal injury claims. They may also result in property damage if a person’s cell phone or other valuable items are damaged in their fall. Many times, these accidents can be prevented. It’s important to have additional liability coverage for times when they can’t. Liability takes many forms. Your agent can help you identify your primary liability risks so they can be properly addressed.
A basic homeowners policy will cover storm damage such as hail, lightning strikes and wind damage. It will not, however, provide coverage for earthquakes, or floods. Everyone can purchase a policy for flood insurance because flood can happy anywhere. Earthquake insurance may be a bit more specialized. It is important to discuss these options with your insurance agent to find out which coverages are needed in your area.
Every couple of years, you should sit down with your insurer to conduct a review of your homeowners insurance policy. Our agents at Reata Insurance Group are available to review your policy and can include the types of supplemental policies that are needed to ensure that you are sufficiently covered if an accident should occur. We can help you make adjustments to your policy that will make it both effective and more affordable. Contact us today to learn more!