Your home—and your life at home—has probably gone through many changes over the years. But has your home insurance policy kept up?
You’ve poured your heart and soul—and probably a good amount of hard-earned cash—into making the place you call home feel like your own. While the changes to your home have likely brought you and your family more enjoyment, they may also have increased your exposure to an unexpected loss, like a costly cyberattack, an expensive home system breakdown, or even a financially devastating lawsuit. Adding one or more of the following four home insurance coverage options to your standard homeowners policy may be an essential step to helping you safeguard everything you hold dear for the long term.
Get to know these four home insurance coverages and how they can help you protect the home and life you’ve worked hard to build.
1. Personal Cyber Protection
It’s very likely everyone in your household has their own laptop, tablet, cell phone, or any number of other digital devices. There are also probably multiple smart TVs, a constantly on-alert virtual assistant, a gaming system, and any number of Wi-Fi–enabled appliances scattered throughout the house. All this technology certainly makes it much easier to do things from home, including working remotely, shopping, and staying in touch with friends and family. On the other hand, this constant connectivity also dramatically increases the risk that you or a family member might fall victim to cybercrime, an incident that can cause a significant financial toll and a big disruption to your life. However, adding Personal Cyber Protection Coverage to your home insurance policy may help. With this policy you typically gain access to professionals who can support you in recovering from a wide range of cyber events as well as get help paying for many of the costs associated with the following types of cybercrime:
- Cyberattack
- Cyber Extortion
- Online Fraud
- Data Breach
- Cyberbullying
- Identity Theft
2. Home Systems Protection
Investing in home systems like radiant heating for your bathroom floors, an emergency generator, or a smart security system certainly helps your whole family feel at ease and safe around the clock. So, what would happen if one or more of these systems were to stop working suddenly? What Morse knows for sure is that it can be an extremely costly, inconvenient, and stressful situation for a homeowner. While a standard home insurance policy may help cover costs associated with property damage caused by a faulty piece of equipment, it usually will not help with the expense of repairing or replacing the machine itself. However, adding the Home Systems Protection endorsement may enhance your current homeowners insurance program and provide coverage that could help you replace or fix essential home systems, including:
- Boilers and Furnaces
- Home Security Monitoring
- Electrical Service Panels
- Central Air Conditioning
- Renewable Heating (e.g., Solar)
- Permanent Emergency Generators
- Pool and Spa Pumps
- Radiant Floor Heating
3. Water Backup Coverage
There are many reasons why uninvited water might have invaded your home. Maybe your sump pump decided to stop working just as heavy rainfall was drenching your area. Or perhaps a root or something similar clogged or ruptured a sewer or septic line on your property, leading to a toilet, sink, or shower drain backing up into your home. Whatever the cause, after you turn off your main water supply, your focus will be cleaning up the mess and repairing or replacing anything damaged. Water can do extensive harm to your home’s structure and your belongings. In addition, you may be faced with having to get rid of standing sewage and potentially some minor mold damage. Standard home insurance does not normally cover any of the remediation expenses related to these issues. But don’t worry! Of course, there is an endorsement, called Water Backup Coverage, that you can add to your homeowners policy to help you pay for the costs associated with water damage to your home or personal property if it’s discharged or overflows from:
- A sewer or drain.
- A sump, sump pump, or related equipment.
- Any system designed to remove subsurface water from the foundation area.
There are a couple of final things you should know about this endorsement. First, it will generally not cover water backup damage that has been caused by a maintenance issue or because of homeowner negligence. In addition, this coverage won’t pay to replace or repair the broken sump pump itself—you’ll need Home Systems Protection coverage for that (see #2 for more information).
4. Personal Umbrella Insurance
From your new pool to the dream sports court you built for your kids, you’ve likely added many things to your property that liven up both your home and life. However, they may also increase the risk of an accident happening. And, if a mishap were to happen, like someone slipping on your pool deck or a hard-hit tennis ball going right through your neighbor’s window, you could end up being sued for any resulting injuries or damages. The good news is that a standard homeowners policy typically has some personal liability coverage built in, meaning you may get some help covering expenses related to a claim, including medical and legal fees. The not-so-good news is that this personal liability coverage has a limit—one that can be reached quickly in a serious lawsuit. Adding a Personal Umbrella Insurance policy may provide you with an extra layer of liability coverage that generally goes into effect once you exceed the limits of your home insurance policy. An umbrella policy may also help keep you from spending thousands of dollars or forfeiting valuable assets, like your home, that may be vulnerable in a legal judgment or settlement against you. While Personal Umbrella Insurance is something every homeowner should consider, you may want consider getting this coverage if:
- Your home has special features such as a pool, hot tub, or trampoline.
- You have teenagers or own a certain breed of dog.
- You have significant assets, including rental investment properties.
- You are a volunteer coach or nonprofit board member.
- You frequently host friends and family in your home.
- You own recreational vehicles like a boat, an ATV, or a motorcycle.
Morse, of course, can help you determine which home insurance coverages to select for your ever-changing home and life.
While these coverages are optional, it doesn’t make them any less important to consider sooner rather than later. So, if you would like the assistance, advice, and perspective of a local insurance professional, the Morse team is here to help. Please don’t hesitate to call us for help updating your home insurance policy to make sure it fits the property, belongings, family, and life you have today, and what you may be envisioning for the future.