Understand Coverage Options for Homeowners Insurance

Video Transcript

"I'm Romie Brown. On behalf of Experts Village, I'm here to discuss with you tips and tidbits on how to buy homeowners insurance. In this clip we're going to talk about some optional coverage?s. Most of your base coverage?s in your homeowner?s policy exclude a few things. You have to add that coverage back on in the form of endorsements or what not. Your base policy, although it be good, it might not fit your personal needs. You need to make sure that all your things are covered. For example, earthquake coverage. That is not covered in your basic homeowner?s policy. You have to add that on as an endorsement. In certain parts of the country you might not feel there is a need to have that coverage added on. And so be it. But in some parts of the country you need to have that because they happen frequently. So it's important to know exactly where you're buying and if that coverage is needed or necessary. One of the things, backup of sewer or drains, which some people confuse with flood. Backup of sewer and drains is just what it implies - when the sewer system backs up and it comes in your house through your sewer hose and so on and so forth through your drains. That coverage on most homeowner policies is not included. You have to buy a separate endorsement. Use it in two types. One for just structure and one for structure and contents. So make sure you ask your insurance professional about that. It's very important also with jewelry. Jewelry has a standard limit or basic limit in a basic homeowner?s policy. If you have some jewelry that is over $2,000 or $2,400 you need to actually add an endorsement like a floater or something to cover that separately. For the simple fact that if you have a $10,000 ring and $2,000 worth of coverage, if that ring is stolen or whatnot, you will be a very upset client and as an insurance professional you'll be upset because now you have to explain to that policyholder that they're $8,000 short on the ring that was very sentimental to them and so on and so forth. So it is important to go over all the optional coverage?s. A meeting with your insurance agent should take about close to an hour, but when you're done, it's an hour well spent because you know you have the proper coverage and everything that you need to have covered is covered."