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Shopping For Homeowners' Insurance? Consider These Four Extra Coverage Options

A typical homeowners' insurance policy will cover the structure of your house, its contents, and liability to other people. However, these are not the only risks you face in your home. Here are four examples of additional coverage to cover some little-known risks:

Inflation Protection

This extra gives you the opportunity to keep up with inflation. Without it, you are only entitled to the amount specified in your policy, which may not be enough to indemnify the risk assured because the inflation may have eroded your money's worth.

Consider an example where you insure your home contents for $10,000. Suppose the contents are stolen sometime later when the inflation is high, and the money cannot replace the stolen contents. In that case, you will have to top up the cash with your money. If you have inflation protection, however, the amount is adjusted to be in line with the current value of the figure.

Building Code Upgrade

If your house is damaged, then you may find that there are building codes that you have to meet during the reconstruction or repair process. These are ordinances that were not in place when the original house was built. For example, you may find that your roofing material is required to withstand a certain temperature level for a specific duration.

Unfortunately, these new codes may cost more than your coverage limit. This is likely to be the case if your house is relatively old. With building code coverage, your insurance company will top up the money needed for the new ordinances.  

Rental Income Protection

These days, many people make extra money out of their homes by renting out extra houses or rooms. If you are one of those people, then you stand to lose a lot of money if damage occurs in your home, and your tenant has to move out. Luckily, some insurers have an optional coverage for this type of situation. If you buy this extra, then you will be reimbursed for the duration of the repair in which a tenant cannot live in your place.

Identity Theft Coverage

Identity theft can happen to anyone, but you are particularly at risk if you are a heavy social media user, wealthy or prefer paying with cards to cash. This has given rise to some homeowners' insurance companies offering identity theft coverage. Some of them offer preventive and restorative services while others only offer the latter. The insurance money will help you to pay for the damages associated with identity theft such as lost wages and attorney fees.

These extras may have different names depending on your carrier. They may also come with different terms and conditions, as well as limits. It is up to you to scrutinize them thoroughly and purchase the ones you need when looking for homeowners insurance St Albert.