3 Additional Insurance Coverage You'll Want To Buy
It's no mystery that home insurance is convoluted enough. Couple that with the decision whether to purchase additional insurance coverage or not, and the terms become even more complicated. However, there are some insurance add-ons that we wouldn't recommend skimping on, especially if you fit into any of these categories:
1. The V.I.P: Liberty Mutual Home Protector Plus
The Selling Points
- Expanded Coverage
- Personal Property Replacement
- Additional Living Expenses
The Biggest Perks
- 24-Hour Emergency Repairs
- 24-Hour Claims Assistance
Who Should Buy It:
Home Protector Plus, despite its fancy name, really focuses on providing over and above service in timeliness. Think of it as the VIP service of home insurance. Will the extra perks that go beyond standard home insurance coverage be enough to justify the higher premium? For some, possibly. This product is most useful for those that want to make sure if anything problematic goes down, they'll have the access they need to their insurer, 24/7/365. Some of the items offered in Liberty Mutual's Home Protector Plus are inherent to any comprehensive home insurance plan, but simply expanded, hence the term, "expanded coverage." Pricing varies per premium, but for emergency repairs and assistance accessibility, Liberty Mutual's Home Protector Plus goes beyond the basics needs.
2. Earthquake Territory: Specialized Insurance By State
The Selling Point
- Will cover some earthquake damage
The Biggest Perks
- Will put a roof back over your head
- Because it is state-run, specialized insurance can be made available to you, where it isn't even an option in other cases (many insurance companies refused to offer this insurance after the devastating 1994 Northridge, Calif. tremor).
Who Should Buy It:
Face it: no one buys insurance because they're expecting some catastrophic event to occur that will financially ruin them, but in the end, that's exactly the purpose of insurance. If you're in an earthquake-prone area, it is smart to purchase earthquake insurance, despite whether thinking it could happen to you or not. The typical homeowner's insurance policy does not cover earthquake insurance, regardless of which area you live in. Legally, they are to offer you coverage once a year with a 30-day time span. Most insurance companies do not want to offer earthquake insurance, which should be a clear sign that any homeowner with that option should spring for it. Admittedly, earthquake insurance will not cover the fancier aspects some insurance coverages offer (e.g, your belongings, inflation guarantee), but it will put a roof back over your head, which is the ultimate goal.
3. Flood Insurance: Specialized Insurance
The Selling Points
- Allows you to re-coup home costs of aboveground structures
- Covers building property damage as well as personal content
- Minimal basement and sub-ground structure coverage
The Biggest Perk
- Not having to rely on government assistance for emergency support, which is essentially a low-interest loan
Who Should Buy It:
Flood insurance, like earthquake insurance, is not something anyone intends on using, but as U.S. flooding incidents continue to increase, it's a solid thing to bet on needing. The statistics of flooding in even non-flood areas as of late have been staggering as increased weather activity impales the community. In fact, 20 percent of flood insurance claims occur outside of high-risk areas. The average flood insurance claim is over $34,000, and the average total claim value is over $3.0 billion per year. In short, flooding even in standard-risk areas is a big business. If your home is anywhere in an area that might receive flooding, it's smart to invest in flood insurance unless: the equity in the home is too low or your income is great enough to fully replace any flood damage out of pocket. Your standard home insurance policy will not cover flooding.