When disaster strikes, Homeowners Insurance can protect the policyholder’s finances. While this type of insurance typically includes property insurance and liability coverage, damage due to termites, flooding or acts of war are not covered. While most homeowners understand the basics of coverage, others are unaware of the benefits for which they are eligible. Below are four hidden coverage types included in homeowner’s insurance.
Policies May Cover Pet Bites
The liability coverage afforded by a homeowner’s policy may offer dog bite protection at no additional cost. While many insurance policies provide liability coverage of up to $300,000, many homeowners don’t realize how important the coverage is until a claim is made. The Insurance Information Institute says that the average animal bite claim is worth $26,000, which makes this type of coverage very useful indeed.
Bringing a Home Into Code Compliance After a Loss
If a fire damages the home, the policy may cover new mandates in addition to damage from the fire. For instance, if a town passes a law requiring homes to have sprinkler systems, the insurance policy may pay the cost of installing the system along with fire-related repairs.
Damage Due to Power Outages
Anyone who’s ever had to empty their refrigerator because of a power outage may be surprised to learn that a Homeowners Insurance policy may cover the cost of replacing spoiled food. Most policies cover restocking fees of up to $500 for food spoiled during a power outage.
Losses Incurred by Family Members who Live Away From Home
If a family has a child at college, dorm room possessions are covered under a homeowner’s insurance personal property clause. While such protection is typically granted regardless of where the child goes to school (as long as they live in a dorm), it excludes off-campus housing where the student would need his or her own renters’ insurance policy.
As many people live paycheck to paycheck, a sudden loss at home could be financially devastating. However, knowing all the protections provided by a homeowner’s insurance policy can make the difference between reassurance and panic during a catastrophe. Consult an insurance agent or visit to learn how to get covered at a low cost.
