When it comes to insuring the house you own, it is very important to make sure you have all the coverages you need. While you may have most of your risks covered, it is important to understand that there may be some gaps in your coverage, and if that's the case, you will need to know about these gaps and take the right steps to cover them with the right insurance coverages. Here are some common gaps people have with their home insurance that you may also have.
Replacement value for your structure
One common gap people often have with their home insurance plans involves the difference in amount between the coverage they have for the structure of their home and the cost it would be for replacing the home. If you paid $250,000 for your house and have this much coverage for it, you might think that you have enough. The problem is, though, that it may cost $300,000 to replace your home if a fire destroyed the entire thing. In this case, you would have a gap of $50,000 that you may not even realize existed. To protect yourself in this, you should make sure your coverage is high enough to cover the cost to replace your house.
Coverage for all personal belongings
A second gap you may have is for your personal belongings. While most home insurance policies offer personal possession coverage, this coverage only generally covers the basic things you own. In other words, this coverage will not typically cover items that are really valuable or rare. If you own diamond jewelry, your policy probably will not cover the full value of these pieces of jewelry. Talk to your agent about adding riders for these types of things, as this would offer a way to cover these types of gaps.
Coverage for your home business
One last type of gap you may have is one for coverage of your home business. If you are currently operating any type of small business out of your house and if you have never told your agent about this business, you probably do not have all the coverage you need in terms of home insurance. To fill this gap, talk to your agent about your home-based business and add any insurance types that the agent recommends.
If you feel that you may have gaps in your home insurance coverage, contact a home insurance agent from an agency like Bear River Insurance to find out if you do and what you can do about those gaps.
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