Future homeowners may think that almost everything is covered under a standard insurance policy, but this is simply not true. Standard insurance covers your physical home, your personal possessions, some liability insurance and additional living expenses. It was mentioned previously that earthquake and flood coverage is not covered under standard plans and that additional coverage must be purchased in order to protect yourself from these hazards. However, these are not the only exceptions to the rule. This section deals with optional packages you may want to consider when buying your basic homeowner’s insurance plan.

Although a homeowner’s plan does cover your personal computer, it will not cover office equipment associated with a small business you run from your home. If you manage a business from home, consider the amount of equipment involved in its operation. Between your business computer, copier, fax machine, office furniture, irreplaceable files and data, you may be overlooking a very expensive part of your home. Talk to an insurance company about small business insurance plans to learn more about the coverage you need.

If you’re home is your biggest or only investment, you might also want to consider umbrella insurance. Umbrella insurance is designed to continue paying for damages to your home or property once your standard insurance is maxed out. For example, if your $300,000 house, which is covered at $250,000, is destroyed by a colossal windstorm, you will have to pay all expenses over your insurance coverage to rebuild. Insurance companies do not offer any guarantees that your home can be reconstructed for the amount of money your policy offers. This is where umbrella insurance is helpful. Umbrella insurance will take over once your standard insurance has committed their maximum amount of coverage and allow you to finish rebuilding and replacing your possessions. If you have financial counsel through an accountant, consider their advice about umbrella policies. Otherwise, you can contact an insurance agent to get more information.

These two options are only a sampling of possible insurance additions. When you finalize your insurance plans, be sure to look over your contract carefully. If your insurance doesn’t cover assets or items that are important to you, think about purchasing additional packages to get the appropriate amount of coverage.

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