You know that there are certain types of insurance that you need in order to properly protect your finances. It’s important to have life insurance to protect your assets for your family. It’s also important to have adequate auto insurance coverage so that you protect your car, as well as reduce the liability that can come with damage to other people or things. And, of course, home insurance is important so that you protect your largest asset.
However, when you buy a home and pay for insurance coverage, you might not realize that you are getting a few extra perks. Indeed, there are some rather surprising perks that come with some home insurance policies.
Surprising Perks Associated with Home Insurance
When you purchase coverage, you might assume that it only covers damage to the home, or liability in the event that someone is injured on your property. However, some policies also include the following:
- Coverage for items stolen from your home.
- Coverage if you end up with forged checks.
- Coverage if you end up with counterfeit money.
- Coverage if you are sued for libel.
- Coverage for unauthorized purchases on your credit card.
- Coverage for unauthorized money transfers made with your debit card.
- Limited coverage for home business items that are damaged.
Not only can these hidden perks be found in a homeowners policy, but some renters insurance policies come with these extra perks as well. You should check your coverage to see exactly what you can expect, since it might be more than you realize.
Not Everything is Covered
You do need to be careful about making assumptions about what is covered by your homeowners insurance policy, though. Policies vary by state, and by the companies offering them. Not every policy is going to be the same, and offer identical perks. As a result, it’s vital that you read through the policy so that you understand what is covered — and what isn’t.
In many cases, you might find that floods, earthquakes, mudslides, and tornadoes are not covered under your homeowners policy. So, the theft of items from your home might get you a payout, but if your home is damaged by a mudslide, you could be out of luck. Realize, too, that you might not have coverage for home business activities. The liability coverage you have on your home may not extend to people who come to your home office on business. In some cases, the cap on damage to home business supplies and equipment is much lower than what you see with non-business items in your home.
Anytime you renew your insurance policy, double check what is covered. Make sure you understand what coverage applies, and how much coverage you have. It’s nice to see the little perks that some home insurance policies have, but you also need to make a note of what is excluded. It’s very unpleasant surprise when you assume that something is covered, only to find out later that it actually isn’t — and that you are on the hook for the cost.