The Best Coverage Options for Your Home and Auto Insurance Bundle

If you own a home and a car, you may want to consider bundling your home and auto insurance policies. Bundling means buying both types of insurance from the same company, which can save you money and simplify your claims process. But not all bundles are created equal. Depending on your needs and preferences, you may want to add some coverage options, also known as endorsements, to your home and auto insurance policies.

Coverage options for home insurance

Home insurance covers your dwelling, personal property, liability and additional living expenses if you have to temporarily move out due to a covered loss. However, there are some common gaps in home insurance that you may want to fill with coverage options.

Here are some examples:

• Replacement cost coverage:

  • This option pays for the full cost of repairing or replacing your damaged or stolen property without deducting depreciation. Standard home insurance policies usually pay only the actual cash value of your property, which is its current market value minus depreciation.

• Water backup coverage:

  • This option covers damage caused by water that backs up from sewers, drains or sump pumps. Standard home insurance policies usually exclude this type of damage.

• Service line coverage:

  • This endorsement covers damage to the utility lines that run underground between your home and the street. It covers excavation, pipe repair and landscaping afterward. 

• Identity theft coverage:

  • This option covers expenses related to restoring your identity if it is stolen by fraudsters. This may include legal fees, credit monitoring services and lost wages.

• Scheduled personal property coverage:

  • This option covers specific items of high value that exceed the limits of your standard personal property coverage. Examples include jewelry, art, antiques and collectibles. You may need to provide an appraisal or receipt for each item.

Coverage options for auto insurance

Auto insurance covers your liability, medical payments, collision and comprehensive damages if you are involved in an accident or other incident with your vehicle. However, there are some additional coverages that you may want to add to your auto insurance policy for extra protection or convenience.

Here are some examples:

• Gap coverage:

  • This option pays the difference between what you owe on your car loan or lease and what your car is worth at the time of a total loss. Standard collision and comprehensive coverages usually pay only the actual cash value of your car, which may be less than what you owe.

• New car replacement coverage:

  • This option pays for a new car of the same make and model if yours is totaled within a certain period of time after purchase (usually one or two years). Standard collision and comprehensive coverages usually pay only the actual cash value of your car.

• Rental reimbursement coverage:

  • This option pays for a rental car if yours is inoperable due to a covered loss. Standard auto insurance policies do not cover rental cars unless they are part of a liability claim against another driver.

• Roadside assistance coverage:

  • This option pays for towing and labor costs if your car breaks down on the road due to mechanical failure or other reasons. Standard auto insurance policies do not cover roadside assistance unless it is part of a collision or comprehensive claim.
    

Umbrella insurance

If you have significant assets or income that could be at risk in a lawsuit, you may want to consider umbrella insurance as an additional layer of protection over your home and auto insurance policies. Umbrella insurance provides extra liability coverage beyond the limits of your underlying policies. It can also cover some types of liability claims that are excluded by standard policies, such as libel, slander or invasion of privacy.

Umbrella insurance typically starts at $1 million in coverage and goes up in increments of $1 million. The cost depends on factors such as how much underlying liability coverage you have, our driving record, where you live and how many vehicles and properties you own.

Coverage options for high net worth families

If you belong to a high net worth family (usually defined as having more than $1 million in investable assets), you may have unique needs and risks that require specialized coverage options for your home and auto insurance policies.

Some examples of these options include:

• Guaranteed replacement cost coverage:

  • Unlike standard replacement cost coverage, this option does not have any limit on how much it will pay to rebuild or repair your home after a covered loss. It will pay whatever it costs to restore it to its original condition using similar materials and quality standards.

• Flexible rebuilding options:

  • This option gives you the choice to receive a cash settlement instead of rebuilding or repairing your home after a covered loss. You can use this money however you wish without any restrictions.

• High-value personal property coverage:

  • Unlike standard scheduled personal property Coverage, this option does not require appraisals or receipts for each item of high value that exceeds the limits of your standard personal property coverage.

Conclusion

As you can see, there are many coverage options for home and auto insurance that can enhance your protection and peace of mind. Depending on your situation and preferences, you may want to consider adding some of these options to your home and auto insurance bundle. If you are a high net worth family, you may also want to look for specialized options that cater to your unique needs and risks.

To find the best home and auto insurance bundle for you, compare quotes from different companies and ask about their coverage options and discounts.