What is Covered By Your Homeowners Insurance? Here's What You Need to Know

Homeowners may often overestimate the coverage offered by their home insurance policy, expecting it to cover all types of damage. However, the truth is a homeowners policy only covers specific occurrences/events up to certain amounts. It has limitations and may have gaps that can leave you struggling to cover unexpected losses. Knowing what your insurance covers will help you find supplemental policies to fill in those gaps.

The following are a few factors you will have to consider while evaluating the coverage offered by your homeowners insurance:

1. Size Limitations

Believe it or not, some homeowners policies set limitations on the number of dwellings, appliances, and the cost of specific types of valuables. For example, if you have an expensive piece of jewelry, you may want to buy a separate policy to ensure that it is covered for its full value. Understanding the size and amount limitations associated with your policy will allow you to get whatever supplemental policies you may need so that all of your property is sufficiently covered.

2. Farming Operations and Other Businesses

Owning a large farm or other similar/ related business carries a lot of responsibility. A farm is considered a business and must be treated like one when it comes to insurance. If you run a business out of your home other than farming, it also must be insured under its own policy. Homeowners insurance may cover items you use for both home and work. Still, it won't cover liability or any equipment that is exclusively used to perform your job.

3. Livestock and Other Pets

If you own a farm, you will want to look into a policy that will cover any damage or liability related to your livestock or pets. Many people don't consider horses or goats as livestock. Still, they do fall under that category when it comes to insurance. Owning certain types of dogs, such as Doberman Pinscher, German Shepherd, or Pitbull may require that you get a specific policy that covers dog bites or any other type of liability they may cause.

Other Types of Supplemental Insurance to Consider

Flood and supplemental policies are also something you may want to research. Homeowners policies will cover specific types of water damage, but damages caused by floodwaters are normally not included. Making home improvements may also result in gaps as well. Take a close look at your policy and consider if it needs to be reviewed. A review will identify any gaps and ensure that your homeowners policy is up to date.

Instead of assuming that everything in your home is adequately covered by your homeowners policy, get your policy reviewed. Trying to find the perfect homeowners insurance policy gets much easier when you work with agents you trust. Are you looking for assistance with your home insurance needs? Contact the experts at the Scavone Insurance Agency Center LLC in White Plains, New York, today. Our team is looking forward to answering all your questions.