Part of having a mortgage is the requirement to have home insurance. If you are on a budget, chances are that you went with the bare minimum amount of coverage that would insure the structure of your home and the personal property inside. However, you may find that the basic insurance policy is not enough to give you the peace of mind that you desire when it comes to your home. That is why you should know about floater coverage and how you can use it.

What Is Covered With Basic Home Insurance?

Your mortgage lender requires that you have coverage for the home structures, but basic policies often cover more than that. You can expect all of the appliances inside to have coverage, as well as personal belongings, furniture, and any other essential items. Basic policies also come with a limited amount of liability coverage, which gives you protection if someone gets hurt on your property.

What Is Not Covered With Basic Home Insurance?

Your basic policy will have limitations, some of which you may not be aware of. For instance, the basic policy is based on the cost to rebuild your home in its current form when you got the policy. If you made modifications to the home, such as remodeling a kitchen or adding an addition, they won't be covered unless you change your policy to reflect the additional materials.

There can also be limits to how much an insurance company will pay for a single claim, which limits how much personal property can be recovered. There can also be a maximum limit for an individual item which tends to vary greatly in price.

Personal property coverage also has restrictions on some items, such as collectibles, cash, jewelry, and guns. Overall, if it is an expensive item, check to see if it is covered.

How Home Floater Coverage Can Help

Home floater insurance coverage is a policy in addition to your main policy, not an alteration of it. You can purchase it to cover those exceptions on specific items you do not have coverage for. Many homeowners use this for expensive items that have value to them, but there are other uses as well.

For instance, a small business run out of a home may not have covered under a basic policy for equipment, inventory, and other business related items. A floater policy can help cover those items separately so that you are completely covered. To learn more, contact an insurance agency like Boone Ritter Insurance.