As a homeowner in Arizona, having a comprehensive insurance policy is crucial to protect your home and belongings. Standard homeowners insurance policies offer basic coverage, but you may want to consider adding specific endorsements or riders to ensure you have the protection you need. In this blog, we'll discuss what add-on benefits are, explore the top homeowners insurance add-ons, and provide tips for getting the most out of your insurance claim. We'll also touch on two common exclusions in property insurance policies.
What Are Add-On Benefits?
Add-on benefits, also known as endorsements or riders, are additional coverage options that can be included in your homeowners insurance policy for an extra cost. These add-ons provide extra protection beyond the standard policy limits, ensuring that you have coverage tailored to your unique needs and circumstances.
Top Homeowners Insurance Add-Ons
Here are some of the most popular homeowners insurance add-ons to consider for your Scottsdale home:
- Scheduled personal property endorsement: This add-on covers high-value items such as jewelry, fine art, or collectibles that may exceed the limits of your standard policy. By scheduling these items separately, you can ensure they are adequately insured.
- Water backup coverage: Standard homeowners policies typically don't cover damage caused by water backups from sewers or drains. This add-on provides coverage for water damage caused by these events.
- Extended replacement cost coverage: In the event of a total loss, this add-on provides additional coverage to rebuild your home if the cost to do so exceeds your policy limits. This can be especially beneficial in areas with increasing construction costs.
- Earthquake insurance: Standard homeowners policies usually do not cover damage caused by earthquakes. This add-on provides coverage for damage resulting from seismic events. And yes, there are earthquakes in Arizona!
- Service Line Coverage: Service line coverage is an optional endorsement that can be added to a homeowners insurance policy. It provides coverage for damage to underground service lines that connect your home to public utility lines, such as water, sewer, and power lines. Without this coverage, repair or replacement of these lines can be costly and not covered by traditional homeowners insurance policies.
- Cyber Coverage: This endorsement can provide protection for losses resulting from identity theft, cyber extortion, and other cyber-related risks.
- Equipment Breakdown Coverage: Equipment breakdown coverage on homeowners policies is designed to protect against sudden and unexpected failures of household equipment and systems. This coverage can include appliances, HVAC systems, electrical and plumbing systems, and even home electronics such as computers and televisions. NOTE: This is NOT the same thing as a Home Warranty. This is specifically for sudden and unexpected failures.
How Do I Get The Most Out Of My Homeowners Insurance Claim?
To maximize your claim benefits, consider the following tips:
- Document everything: Keep a detailed inventory of your belongings, including photographs and receipts. This documentation will help speed up the claims process and ensure you receive the appropriate compensation for your losses.
- Understand your policy: Familiarize yourself with your policy's coverages, limits, and exclusions. This knowledge will help you make informed decisions about add-ons and ensure you have the protection you need. Of course, it helps to work with a “Tru” insurance advisor, so that you truly understand your coverages.
- Stay proactive: Regularly review and update your policy to reflect any changes in your home or personal belongings. Add or adjust coverage as needed to maintain adequate protection.
- Communicate with your insurance agent: Keep an open line of communication with your insurance agent. They can help you navigate the claims process and advocate for your best interests.
What Two Things Are Not Covered Under A Property Insurance Policy?
While homeowners insurance policies provide extensive coverage, there are some common exclusions to be aware of:
- Flood damage: Most standard policies do not cover damage caused by flooding. To protect your home from flood-related damage, consider adding flood insurance as a separate endorsement or purchasing a separate flood insurance policy.
- Earthquake damage: Damage caused by earthquakes is typically not covered under standard homeowners insurance policies. If you live in an area prone to seismic activity, consider adding an earthquake insurance endorsement to your policy.
So, adding endorsements or riders to your homeowners insurance policy can provide enhanced protection for your Scottsdale home. By understanding your policy's limits and exclusions, and considering the top add-ons available, you can tailor your coverage to meet your unique needs and enjoy greater peace of mind.
Talk to a trusted advisor today to get the right coverage at the right price for your home. Call 480-398-8297.