These Are a Few of Our Favorite Things
I thought it might be fun to go beyond the basics and explore the team’s favorite add-on coverages. Whether it’s your homeowners policy or your business’s property policy, here’s how the Bagwell team responded when asked: “What is your favorite random add-on or uncommon coverage?”:
Evan: Loss Assessment on a Homeowners Policy
Loss assessment coverage adds an additional limit to your homeowners policy that will protect you as a member of a Homeowners Association (HOA). If an HOA has a catastrophic loss that exhausts the Association’s insurance limits, the HOA does not have the reserves to pay the deductible or the claim is not covered under their current policy, the HOA board can send out an assessment to all association members requesting each pay their proportionate share of the deficit. For the coverage to respond, the loss must be a covered cause of loss under your policy. If you don’t have this coverage in place, then you could find yourself paying assessments out of pocket.
Johnna: Water and Sewer Back-up Coverage
One of my favorite coverages to add on is water & sewer back-up to commercial property policies. This coverage provides a sub-limit for damage due to clogs, failed sump pumps, and backed-up drains and septic tanks. Most business owners do not know that the coverage is not automatically included in the standard policy form. As you can imagine, things could get very messy very quickly! This coverage will give you peace of mind that your property will be covered and on average, it’s less than $15 a month! This coverage is also available on certain homeowners policies.
Angie: Umbrella Insurance
No, in this case, this is not something to keep the rain off your head, but to protect you from losing your assets in a lawsuit. Umbrella insurance refers to liability insurance that is in excess of specified other liability policies. It may also serve as primary insurance for losses not covered by your other policies. You don’t have to have to be a millionaire to be sued for millions!
Sarah: Personal Articles Policy
Basic homeowners policies cover very little when it comes to jewelry. Adding a personal articles policy to your insurance program can provide coverage on these items beyond the basic coverage provided in a homeowners policy. This policy can help provide peace-of-mind when it comes to protecting family heirlooms and other special items. Coverage can cost relatively little in relation to the cost of the items and can protect you from theft and damages. I know that I would be devastated if my grandmother’s ring was damaged, so I definitely appreciate this option.
Kyle: Equipment Breakdown Coverage
An essential coverage that should be added to all personal and commercial policies is equipment breakdown coverage. This coverage responds to protect equipment that is damaged as a result of mechanical or electrical failure. Household appliances such as washers and dryers, systems such as HVAC, or electrical equipment used by various professional industries such as dentists would not be covered if damaged by accidental breakdown without this coverage. Some coverage forms may include this coverage automatically, but the majority of carriers offer the coverage as optional additional coverage. It’s another one that can be added to certain homeowners policies!
Clark - Rental Reimbursement Coverage
One of my favorite coverages to add on is rental reimbursement coverage on personal and commercial auto policies. This coverage will pay for a rental car and provides a “per day” limit and a maximum limit. A lot of people do not realize that this coverage is not automatically included in a standard auto policy for your rental car or they have limits that are too low for them to rent a comparable vehicle. Rental cars are expensive especially if you need an SUV for work or kids. I had a friend that was in a bad accident and it took 2 months for his car to be repaired. Can you imagine the rental car invoice he would have had to stomach if he didn’t have this coverage?
There are so many more options out there that are either undersold or not well understood. Feel free to give us a call to talk about one of these coverages or others that you might not know are available. After all, we love geeking out on insurance coverages, so you don’t have to!