About 90 percent of all US natural disasters involve flooding, and one inch of flood water damage can cost you up to $25,000.
With these heavy costs, you want to make sure that your home is protected from flood damage. Unfortunately, many homeowners insurance policies don’t cover flooding. It needs to be added to the policy as an endorsement to your current policy, or a separate policy altogether.
You don’t want to be in a situation where you’re paying insurance premiums, but your damages are not covered under your policy. There are other add-ons that you may want to consider as well. Below, we discuss nine different add-ons to consider for your homeowners insurance.
Flood Damage Coverage
Flood damage can result in significant out-of-pocket expenses and repairs. The location of your home plays an important role in your decision to get additional coverage for flooding. In the National Flood Insurance Program’s New Risk Rating 2.0 (as of October 2021) Flood Zones are no longer a rating factor. NFIP is now incorporating new technology to evaluate the flood risks of every property individually. The higher the risk of flooding, the higher your premium will be. Florida has varying elevations and land grades and is a great example of varying rates.
Flood insurance will cover your building and the contents of your home in case of a flood (rising water that affects two properties and/or two acres). It’s one of the most common additions and highly recommended for all Florida properties.
Underground Services Lines Coverage
Your homeowners insurance policy coverage should already include fire protection, storm coverage, and personal liability.
An add-on that you may want to consider is underground service line coverage. If your water bill is too high, there could be a break in the underground water pipe. To get to the damage, your entire front lawn will have to be excavated. In addition to hiring a plumber and landscaper, this is an expensive problem to resolve.
A standard homeowners policy does not cover underground service lines. This add-on can protect you and your home from damage to water, sewer, electrical, cable, or gas lines and you will definitely hope that you have this coverage if a problem like above ever arises.
Sewer and Drain Back-Up
Something you don’t want to consider or think about is your sump pump or other drainage system backing up into your home. You can also have a situation where the municipal drainage systems overflow because of heavy rain. Clogging can also be caused by old sewer lines or tree roots.
This can end up causing significant damage to your home, which can be expensive to fix. An add-on for sewer and drain back-up is usually fairly inexpensive for the year (depending on the age of your home and plumbing systems) and can help save you money in the long term.
Guaranteed Replacement Cost
This shouldn’t have to be mentioned, but with increasing premiums, it’s important to note that not all policies are created equally, and a lower rate could be indicative of the property being insured on an Actual Cash Value basis instead of Replacement Cost. It is absolutely imperative that your Agent specify that your quote or policy is written on a replacement cost basis. Most ACV policies won’t be acceptable for your loan if you have a mortgage, anyway.
If you lose your home to a fire or a natural disaster and the damages are extensive enough, you’ll have to rebuild. With an add-on for guaranteed replacement cost, your insurance company will pay for the cost of replacing your entire home. It will cover the full cost of your specified Coverage A to rebuild your home back to its previous size and specifications.
We recommend having an Annual Review with your Florida Insurance Agent. If you’ve done additional upgrades, like granite countertops, custom flooring, or bathroom renovations, you will want your insurance policy to be updated and cover these upgrades in the event you have to rebuild.
Valued Possession Coverage
If you have valued possessions in your home, you want to get added coverage in case your valuables are damaged, destroyed, or stolen. This can include:
- Electronics
- Collections like stamp collection, coin collection, antiques
- Fitness and sporting equipment
- Musical instruments
- Artwork
- Firearms
- Jewelry including wedding rings
- Silver
- Family Heirlooms
You have to provide a checklist of all of your valued possession, including a detailed description and appraisal value. By getting a separate add-on for your valuables, you can ensure that everything within your home is able to be replaced in the event of a claim.
Your valuables will be protected if you lose your home or they are damaged. For example, if your electronics get damaged because of a lightning strike or power surge, they can still be covered under your policy.
Umbrella Insurance
If you’re sued for damages that are over and above your regular homeowners insurance policy, an umbrella insurance policy will step-in and cover you for the additional costs. It covers you for lawsuits from third parties for bodily injury, property damage, and other claims like defamation.
If you have a pool, you don’t have to have lavish parties to consider getting this add-on. The slightest second can result in an accident that can be a reason to consider getting additional coverage.
An umbrella policy will cover you for the settlement plus any legal fees. Your underlying coverages have to be in order in order to qualify for an umbrella policy so discuss your current coverages and umbrella options to protect yourself from these potential problems.
Contact Us Today for These Add-Ons and More for Your Homeowners Insurance Policy
To better protect your you, your family, and your home, you should choose the different add-ons that fit your needs. Remember that each of these add-ons will impact your premiums. If you’re looking to compare quotes and find the right policy for you, contact us today.
We compare quotes from over 150 of Florida’s top-rated homeowners insurance companies, so you don’t have to. With quality service and affordable premiums, we will work with you to ensure your needs are met today and at every renewal.
LEGAL DISCLAIMER
Views expressed here do not constitute legal advice. The information contained herein is for general guidance of matter only and not for the purpose of providing legal advice. Discussion of insurance policy language is descriptive only. Every policy has different policy language. Coverage afforded under any insurance policy issued is subject to individual policy terms and conditions. Please refer to your policy for the actual language.
