Article written by Katie Zurawka, Howard Hanna Insurance
Despite the common misconception, all home and auto policies are not created equal. Most start with a base policy that covers the essentials and you can then add additional coverage for more tailored protection. Optional coverages for home and auto insurance provide additional protection for specific situations not included in standard policies. Here’s a detailed breakdown of just some these options:
Optional Home Insurance Coverage
1. Flood Insurance:
Covers damage from flooding due to heavy rain, hurricanes, or overflowing bodies of water.
Flood insurance is not covered by your home policy and requires a separate policy.
2. Sewer Backup Coverage
Covers damage from sewage or water backing up into your home through drains or sump pumps. You might have this coverage but you want to review if the limit selected is still adequate.
3. Scheduled Personal Property Coverage
Provides extra protection for items of value such as jewelry, art, collectibles, or antiques.
Removes the deductible requirement in the event of a loss and affords coverage unless otherwise excluded.
4. Umbrella Insurance
Extends liability coverage over the limits of your home and auto insurance.
Covers lawsuits or claims that exceed your standard policy. More importantly, this provides the cost to defend you against these claims.
5. Cyber Protection and Identity Theft Protection
Cyber typically includes first-party coverage of losses incurred through data destruction, hacking, data extortion, and data theft. If you are online, the exposure is present. ID theft covers expenses related to restoring your identity, such as legal fees or lost wages.
6. Home-Based Business Coverage
Protects equipment and liability related to running a business from your home.
7. Service line coverage
Covers the cost of repairing or replacing damaged service lines on a property. Service lines are underground pipes and wiring that connect a home to a main supply of utilities, such as water, electricity, gas, internet, and phone lines
8. Hidden/concealed water damage coverage
Covers hidden/behind the wall water leaks that are not typically covered in a base homeowners policy
Optional Auto Insurance Coverage
1. Gap Insurance
Covers the difference between your car’s current market value and the amount you owe on a loan or lease if your car is totaled.
2. Roadside Assistance
Provides services like towing, jump-starts, flat tire changes, and lockout assistance.
3. Rental Car Reimbursement
Pays for a rental car while your vehicle is being repaired after a covered accident. You may have the coverage, but check what limits are available.
4. Custom Equipment Coverage
Protects customizations like stereo systems, aftermarket wheels, or custom paint jobs.
5. Accident Forgiveness
Prevents your premium from increasing after your first at-fault accident.
6. New Car Replacement
Reimburses the cost of a brand-new vehicle if your car is totaled within a specified time frame (usually the first year or two).
7. Rideshare Coverage
Provides protection if you drive for services like Uber or Lyft, filling gaps left by standard auto insurance or the rideshare company’s policy.
8. Non-Owner Car Insurance
Covers liability if you drive vehicles you don’t own, such as rentals or borrowed cars.
9. Pet Injury Protection
Covers veterinary expenses if your pet is injured in a car accident.
Choosing Optional Coverage
Assess Your Needs: Consider your assets, lifestyle, and potential risks.
Review Policy Exclusions: Understand what your base policy doesn’t cover.
Cost vs. Benefit: Evaluate whether the additional premium is worth the added protection.
Contact the Howard Hanna account management team for a coverage review to confirm your policy aligns with your needs and provides the protection you expect in the event of a claim.
