While homeowners insurance typically includes liability coverage and property insurance, damages to your home due to floods, war or termites are usually not covered with standard policies.
Whereas homeowners for the most part understand the basic coverage they qualify for through their policy, there are a few protections homeowners may be eligible for that they may not be aware of.
Here are five lesser-known benefits of homeowners insurance.
Your policy may cover losses due to pet bites.
Believe it or not, the liability coverage you gain through your homeowners insurance policy may offer dog-bite protection for no extra cost.
While many policies provide liability insurance coverage, between $100,000 and $300,000, according to the Insurance Information Institute (III), homeowners may not realize how important this coverage is until they need to make a claim.
The III revealed the average dog bite claim is roughly $26,000, which makes this coverage very useful if you ever need the protection.
Your policy may cover the cost to bring your home up to code after a covered loss.
If a grease fire ruins your kitchen, and the fire spreads to other parts of your home, your insurance policy may cover any new mandates on top of the damages caused by the fire.
For example, if a law is passed requiring homes to integrate water sprinklers in your home to help combat house fires, your insurance policy may cover the cost to add the sprinklers throughout your home as well as cover the damages caused by the fire.
Your policy may cover damage from falling debris.
If for some strange reason a satellite sank through the thermosphere, acquired earth’s gravitational pull and crashed into your roof, the damages to your home may be covered through your homeowners insurance policy.
Your policy may cover damage due to power outages.
If you lived in the northeast during the infamous power outage of 2003 and had to empty your refrigerator due to spoiled food, your homeowners insurance policy may have covered the cost for you to restock your refrigerator.
Most homeowners insurance policies cover refrigerator-restocking fees for up to $500 for food lost (spoiled) due to a power outage.
Your policy may cover property losses of family members who no longer live at home.
If you have a child away at college, their personal possessions (in their dorm room) are typically covered under a personal property clause in your homeowners insurance policy.
While this protection is usually granted no matter how far your child travels away from your home for school (provided they live in a dormitory), the protection excludes off-campus housing where students need their own renters insurance policies.
Being aware of all the protections your homeowners insurance provides can be the difference between relief and panic in the event of a home-related catastrophe.
Talk to your insurance provider to get a better understanding of what protections your current policy offers, and what extra coverage you can obtain for a little extra cash each month.
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