Getting Proper Coverage (part 2)
Continued from Getting Proper Coverage (part 1)
Get these types of important coverage, too:
Inflation guard
This option annually increases your premium at the rate of local building-cost inflation.
Ordinance-and-law coverage
This rider, which covers the costs of bringing your home into compliance with current building codes, is a must if your home is more than a few years old.
Limit your liability
Your homeowners policy protects against lawsuits for accidents that happen on your property. It also covers you if your dog bites someone.
You might also consider umbrella liability coverage, which is additional coverage over and above your regular homeowners liability limits.
Consider these options:
Displacement
Your homeowners policy also provides for living expenses if you’re displaced; replacement of structures such as garages and sheds; and limited medical coverage for someone injured on your property. Don’t buy more than the minimum offered. Depending on your situation, however, several other types of coverage may be worthwhile:
Floods
Floods aren’t covered by ordinary homeowners insurance. Flood insurance is available through the Federal Emergency Management Agency. In California, you may need earthquake coverage; check with the California Earthquake Authority.
Home business coverage
Business property worth more than $2,500 isn’t covered by a homeowners policy, so buy a separate policy – also known as a rider – to fill the gap. Business liability coverage must be purchased separately, too.
Riders for valuables
A standard policy provides only minimal coverage for antiques, collectibles, furs, silver, jewels, cameras, computers, musical instruments, and firearms. For these, you need separate coverage.