Things to consider when insuring your home.
Replacement Cost. Policies require that you insure your home for at least 80% its replacement cost. If you don’t, in the event of a partial loss, the company would settle the loss on an actual cash basis (depreciated) less your deductible. Believe us, you do not want this to happen to you.
Water Back up. This is different form overflow or leaks from plumbing, appliances or heating systems. Water overflows and or back ups from sumps, sump pumps, or related equipment or water that backs-up through sewers or drains are excluded.
Natural Disasters. Flood and earthquake damage is excluded from standard policies. Earthquake coverage can typically be added as an endorsement. Flood insurance can be obtained through the National Flood Insurance Program.
Short or Long-term Renters. Typically, policies cover owner occupied residences. Your homeowner’s policy may not not cover online room or entire unit sharing/renting . Also, typically long term renters are not covered. Some of these exposures can be covered by endorsing your existing policy. Others may require a different policy. If you are planning to rent any portion of your home, for any period of time, you should contact your agent.