Do You Need Additional Home Owners Insurance?
Hello first time home buyers, according to an article in the Wall Street Journal, a survey released by the Insurance Information Institute, found that nearly half of all American homeowners mistakenly believe that their homeowner insurance policy will cover them against losses due to floods. It does not. While most standard homeowner policies (the one required by the lender) does cover water damage resulting from burst pipes or an appliance leak, it will not cover flooding.
Flooding, as defined by the National Flood Insurance Program, is excess water on land that is normally dry, affecting two or more acres of land or two or more properties. Flood insurance is a separate policy. If you are getting ready to purchase your first home, speaking with your insurance advisor should be a part of your home buying process. Here are five types of insurance coverage you may want to discuss with your insurance advisor.
Excess flood insurance. Even if you have a standard flood policy, it might not be sufficient to protect you. Policies purchased through the National Flood Insurance Program may be capped at $250,000 for your homes structure and $100,000 for contents. Coverage amounts may change without advance notice. Make sure to speak with your insurance advisor regarding updated rates and coverage.
Jewelry and collectibles coverage. Whether your valuables consist of jewelry, art, comic books, or a wine collection, you need valuable articles coverage to insure their full value. A standard home owners insurance policy has limited coverage for these items and, in the case of loss, a deductible may apply.
Workers compensation. Workers compensation insurance covers the medical expenses and lost wages of baby sitters, or other household employees who are injured or become ill while working in your home. It also protects you, as their employer, from liability.
Cyber insurance. Personal cyber protection may cover your losses arising from identity theft, hacking or cyber stalking. If your identity is stolen, cyber insurance may be able to replace monies that was stolen and ensure that you have the financial and administrative resources you need to get your life and identity back.
Umbrella policy. An umbrella policy provides excess liability coverage to help protect you and your assets when the limits of your home or auto policies is not sufficient to cover the cost of a lawsuit or accident. For more information, please call your insurance agent.
As always, thank you so much for stopping by. Remember, if you are thinking of purchasing your first home, please contact us. We are here to help. We have been helping Houston first time home buyers since 2011 and we can help you. I hope you have an amazing day. Until next time...Diana
