Special Coverage

Special coverage refers to an insurance policy or a rider to an existing policy that covers losses not normally covered in a basic or broad coverage house insurance policy.

Most special coverage policies cover items or losses that are not normally covered by insurance. A common example of special coverage would be flood insurance. Flood insurance is special coverage because it has to be purchased separately from other home insurance policies.

Another example of special coverage would a rider to a standard policy covering valuables, such as jewelry, that are stored in a private home. Most insurance policies and renters’ policies will not cover valuables such as electronics, collectibles, or jewelry when they are stored in a private home.

Some house insurance policies may set a limit on the value of items that they will cover. This means special coverage is often needed for vehicles, heavy equipment, electronics, and collectibles.

Special coverage may also be required if a person is operating a business in her home or storing items related to her business in her home. Some kinds of home businesses, such as daycares, may require special liability coverage.

In these cases, it should be possible to get a rider or endorsement to your policy. This is a provision that adds extra coverage to the policy to cover such exclusions.

Special Liability Coverage
Special liability coverage protects a homeowner from lawsuits and legal actions arising from activities not covered by a normal insurance policy. A common example of this would be a home business, such as a daycare or pet care center.

Special liability coverage could also be required for homeowners that take in tenants or roommates. Owners of certain kinds of pets may also have to purchase special liability coverage.

Special Coverage and Natural Disasters
Homes in locations that are prone to certain kinds of natural disasters, such as earthquakes and floods, may require special coverage. An example of this would be earthquake insurance in California.

Another would be flood insurance which is underwritten by the federal government and must be purchased separately from a general homeowners’ policy.

Special Coverage Considerations
Whenever you purchase insurance you should always ask about special coverage. Ask what is not covered by the general policy and how much the special coverage will cost.

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