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Should I Add Optional Insurance to My Home Insurance?

When it comes to evaluating home insurance, one of the questions that many people ask is how much is too much? There is no one answer that's right for every property owner. However, it makes sense to look into optional insurance and what it could do to make the overall home insurance package stronger. Here are some factors to think about closely before deciding there is enough coverage in place already.

What is Optional Insurance?

Optional insurance is any type of additional protection that can be added to a plan that is considered basic or standard coverage. Think of it as another layer of protection that picks up where the other provisions in the policy leave off.

One way to understand how this works is to think about the corporate insurance plans provided by an employer. There is typically a standard life insurance plan included in the benefit package. The employ can elect to participate in another plan, often a term life policy. Participation in that second plan is purely optional. Choosing to do so means more benefits for beneficiaries when the covered party passes away. That second plan also could be used to cover end of life expenses while the funds from the standard plan go to help keep the family financially secure.

How Does This Relate to Home Coverage?

The same approach can be used for real estate insurance. For example, how much protection does your basic insurance policy provide for the contents of your home? Perhaps there are some provisions, but what about your personal effects? Are they covered by those terms and conditions?

If the answer is no, then optional insurance makes sense. You will want to add protection that would reimburse you if any of your belongings that are classed as personal property are damaged in a fire or other covered event, or stolen.

How Do I Know What's Covered?

It's not unusual for homeowners to not be fully aware of what protections they already have in their current policies. That's where working with an insurance broker comes in handy. With the aid of broker, it's possible to consider the current scope of coverage point by point. Once that's done, it's easier to see where the policy provides excellent coverage in many areas, but is somewhat weak in others. Those weaker areas can be reinforced with the aid of optional coverage and provide a more complete range of protection.

Remember that the purpose of any type of insurance is to prepare for what could happen. In the case of your home, you are thinking in terms of having access to resources that help you overcome a fairly wide range of events. Now is the time to take a good look at your current coverage and determine if it's enough. Talk with a broker and find out what sort of additional coverage would make that good plan even better. Increasing the range of options will be more affordable than you realize.

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