Why You Need To Understand Your Homeowners Insurance If You Love To Travel
If you travel frequently, you may have thought about what you would do if any of your things were lost or stolen on your trip. But did you know that protection against these losses is a standard part of a homeowners insurance policy?
While most people think of homeowners insurance as protecting a home and its contents, almost all policies continue to cover your possessions when you take them with you on trips, whether that's a vacation to Fiji or a car ride to the corner store. But if you want to make sure you're getting the protection you need while you're traveling, there are a few important things to keep in mind.
Understand The Dollar Limitation
Most homeowners don't travel with anything close to all of their valuables. Because of this, you may never run into the dollar limitation on your off-premises coverage. But it's still important to know what it is so that you know how much you can take with you without buying extra coverage.
Many policies calculate their off-premises coverage as a percentage. For example, if your policy covers $30,000 in personal property and has a limit of 10% outside of your residence, you would be covered for $3,000 while traveling. If you will regularly be traveling with more than your insurance covers, it would be a good idea to call your insurance agent and have your coverage adjusted.
Consider A Rider For Expensive Items
If you have particular valuables that you often travel with, such as an heirloom wedding ring or an expensive fur coat, it might be a good idea to get a special rider, or provision, covering them. For instance, you could ask for a rider that gives complete coverage for them both at home and while traveling rather than raising your entire off-premises coverage to 100%.
Check What Losses Are Covered
Many homeowners policies will cover only losses that you are not responsible for. If you misplace a piece of luggage on your trip, that's very different from it being lost or stolen while in the care of an airline – which is generally covered. And almost all policies also have reporting requirements for theft, so it's crucial to know what they are and follow them should you have something stolen.
Know The Difference Between Cash Value And Replacement Cost
Over time, almost everything you own depreciates in value. But while your used laptop may only be worth half of what you paid for it, you'd still need to pay full price to buy a new one if yours was stolen. If your insurance coverage is for cash value or market value, your coverage is basically for what you could sell your things for used. Replacement cost coverage is for what you could buy your things for new.
Look At Business Coverage If You're A Business Traveler
If you are traveling for pleasure, the provisions of your homeowners insurance are what matter. But on business trips, it's different. Thefts and losses on these trips would be covered under home business insurance. This may be purchased as a completely separate policy; some companies like C R Gregory Insurance Inc also offer it as a rider to homeowners insurance.
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