Most homeowners comprehensive policies cover damage from fire, rain and wind; however a basic policy won’t cover you for flood or sewer backup damage. If you live in an area prone to flooding, sewage backups it may be very important for you to have this extra coverage. Flood, sewer back up or earthquake coverage can be bought separately or as an endorsement to your current homeowners’ policy.
Another area where homeowners insurance often comes up short is liability protection. If someone is injured in your home or on your property (this includes your boat, car, cottage, etc.); you may be liable. An umbrella policy extends further protection from lawsuits and can be a good addition to your coverage. An additional $1 million of liability coverage costs between $150 & $200 per year, and may completely be worth it if someone is injured on your property.
If you have any valuables, such as art, stereo equipment, furs, or jewelry you will want to discuss these with your broker. Many policies have sub limits on these items. Depending on the value, it may need to be specifically listed and have a current appraisal on file.