WHAT IF GOOD STUFF HAPPENS?
What If I Want To Rent My Home On Airbnb?
Not every insurance provider will offer coverage if you decide to rent out your home or condo unit while you’re not using it. Call your insurance advisor to discuss the details. Short-term rentals might need an endorsement to your current policy, or it may need to be written to a different policy to provide the coverage you need. Check with your HOA or Community Association to determine if rental services are prohibited.
What If I Want To Build A New Deck Or Garage?
Be sure to add coverage effective on day one of construction. Generally, the full value of the project is added at that time. This way, if an accident or damage occurs during the building process, you have protection in place to recoup the cost.
What If I Buy An Ebike?
Some insurance carriers will add ebike coverage to an auto policy. If they won’t, you will need a separate policy to cover loss or damage, and liability. Liability insurance is not required to ride an ebike and is not typically covered by your homeowner policy for liability or physical damage.
What If My Child Moves Into A Residence Hall Dorm Room?
Most homeowner’s policies extend coverage to a dorm room. Usually that includes liability and a limited amount of personal property. Some insurance carriers extend coverage to off-campus housing, but it’s unlikely there would be coverage for additional living expenses in case your child cannot inhabit the housing after damage. Every homeowner’s policy is different, so check before your child moves into a dorm or off-campus housing.
What If I’m Asked To Serve On The Board Of A Homeowners Association?
Find out if the HOA has a Directors & Officers policy that would protect you. Your insurance advisor can check your homeowner’s policy for coverage or exclusions.
What If I Receive An Expensive Piece Of Jewelry As A Gift?
Get the jewelry appraised or ask for a bill of sale with a detailed description included. Most of the time, it can be scheduled on your homeowner’s policy, or you can purchase a separate jewelry policy. The same is true for other personal property—a gun collection, artwork, musical instruments, collectibles, etc.
WHAT IF BAD STUFF HAPPENS?
What If My Shed Burns Down?
Fire is a covered peril in your homeowner’s insurance policy through “other structures.” You’ll want to make sure the amount on your declaration page is sufficient.
What If I Have To Move Out After A Claim?
If, after a covered loss, your home is not fit to live in, your homeowner’s policy will provide coverage for the additional expense to temporarily live elsewhere. Be sure your limit is adequate to cover up to 24 months of potential expenses.
What If Sewage Backs Up In My Home?
In order to file a claim for damage, you must have water/sewer backup coverage. This is an endorsement that is not automatically included in typical homeowner’s insurance policies.
WHAT IF MY HOME IS NOT INSURED TO FULL REPLACEMENT VALUE?
The cost of building materials and labor have increased significantly over the past few years. If you have done any renovations or additions, your current coverage may not be sufficient to rebuild your home. Your insurance advisor can walk you through a replacement cost estimator to see if values should be adjusted so you can be fully insured. Keep in mind, the replacement cost of your home is not the same as the market value—insurance is based on what it would cost to rebuild your home and does not include the value of the land.
ASK THE QUESTION:
DO I NEED AN UMBRELLA POLICY?
Yes! An umbrella policy provides an additional layer of liability protection above and beyond your insurance policies.
Say you are in a five-car pileup accident and your policy is responsible for the damage on several of the cars — plus there are lawsuits. Without umbrella coverage, you could have millions of dollars in out-of-pocket expenses.
Review your assets. Then talk to your insurance advisor about a comfortable limit of liability to transfer that risk to an umbrella insurance policy.
Meghan Feagans is a second generation insurance agent. She lives in Millsboro, DE with her partner Doug and their three girls. In her spare time, you can find her at the beach, softball or field hockey fields, cheering on the kids.
Diane Frederick is a Personal Lines Private Client Specialist with over 20 years of insurance experience. She enjoys the beach and spending time with her kids and grandkids.
Check out our new issue of DIG Magazine to explore more “What Ifs” from insurance and business.