Let’s start with basic homeowners insurance and what it entails. There are two sections of home insurance: Section I and Section II. The first section contains property insurance coverage in the form of Coverage A through Coverage D. Each type of coverage insures something different, including dwellings and attached structures; other structures on the premises; personal property within the structures; and loss of use from not being able to live within the home.
The second section, containing Coverage E and Coverage F, deals with liability insurance coverage, with E covering personal liability including injury to others and F covering medical payments for accidental injuries others obtain at your home.
A combination of these different coverage types typically includes damage resulting from fire, certain types of weather (lightning, wind, hail, snow or volcanic eruptions), theft or vandalism, water and aircrafts or vehicles.
What other types of coverage can you purchase?
Since there are many things that cause damage that isn’t covered by basic home insurance, homeowners can purchase additional coverage. One of the most popular types of coverage, especially in California, is earthquake and flood insurance. Since California is prone to earthquakes, and big rainstorms usually cause flooding and mudslides, this type of coverage is a must for those who live in certain areas. High value item coverage is another popular type, good for those who own very expensive antiques, jewelry or pieces of art.
If you often have drain problems, you might consider sewer and drain coverage that helps when the drains get backed up. Those that work from home might want to purchase home business coverage as well to insure their equipment and supplies as well as protect against liability. There is also coverage for business merchandise, which is helpful for home businesses that also store products or inventory there.