YOU ASK:

What extra coverages can I add to a Homeowners insurance policy?

WE ANSWER:

In addition to the coverages included in your Homeowners insurance policy, there are a number of valuable provisions which you can purchase separately. It is important that you are informed of the existence of these Homeowners insurance policy endorsements, since insurance providers are little likely to tell you about the policy riders unless you ask.

Additional Homeowners Insurance Policy Coverages

Sewers and Drains Backup Coverage

Sewage backup used to be covered by Homeowners insurance policies in the past but in present day they are generally excluded from them. You can obtain such coverage by purchasing the sewers and drains backup endorsement, instead. It costs less than $100 a pear for coverage of $20,000.

Sewers and drains backup coverage should not be underestimated: it is a valuable rider to have, since sewage and drains backup can cause massive problems in your basement, sometimes worth thousands of dollars in repair or reconstruction costs. You should check with your insurance provider to see what is covered under the endorsement - some companies may provide broad coverage, whereas others may exclude damage to personal belongings or they may restrict the rider to mechanicals and electronics.

Building and Ordinance Coverage

If your house is old and needs to be rebuilt after suffering major destruction, recovering it up to the old standards may not be possible because new building codes come into force all the time. At the same time, your Homeowners insurance policy covers your home's reconstruction to its previous standards. This may leave you in a situation in which you will have to take out thousands of dollars out of your pocket to pay for the upgrades required by law.

An excellent way to avoid this is by buying the building and ordinance rider - it will cover all the reconstruction costs and will pay for your home to be brought up to the latest building code standards. The good news is that this endorsement is inexpensive, too - it costs about $70 a year.

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