When most homeowners think about their insurance, they focus on the basics: coverage for fire, theft, or severe weather damage. While these are essential protections, many people don’t realize there are additional coverage options that can make a big difference when life throws unexpected challenges their way. Overlooking these options can leave dangerous gaps in your policy, forcing you to pay out of pocket for expenses you assumed were covered.
At Hanford Insurance, we believe that peace of mind comes from knowing your policy protects your home, your belongings, and your financial stability. Here are some of the most commonly overlooked home insurance coverage options that every homeowner should consider.
Water damage is one of the most expensive claims homeowners face — and not all water damage is created equal. Standard policies typically cover water damage from burst pipes or sudden leaks, but they often exclude damage from a sewer or drain backup.
A backed-up sump pump, overflowing drain, or clogged sewer line can flood your basement and ruin flooring, furniture, and treasured belongings. Without this additional coverage, you may be left footing the bill for thousands in cleanup and repairs. Sewer and drain backup coverage is an inexpensive add-on that provides a safety net for one of the most common — and messy — home disasters.
Think of all the systems that keep your home comfortable: your furnace, central air conditioning, water heater, and major appliances. If one of these breaks down due to a mechanical or electrical failure, it can be costly to repair or replace.
This is where equipment breakdown coverage comes in. Unlike a home warranty, which is often limited in scope, this endorsement can cover sudden breakdowns of essential home systems. For a relatively small premium, you could save thousands if your HVAC system or refrigerator suddenly stops working. It’s a modern coverage option that’s becoming increasingly valuable as households rely on more advanced — and expensive — technology.
Home values and construction costs don’t always stay the same. In fact, inflation and supply chain challenges have caused significant increases in the price of labor and materials in recent years. If your home is severely damaged and needs to be rebuilt, your standard dwelling coverage may not be enough to cover today’s costs.
Extended replacement cost coverage provides additional funds above your policy limit to help rebuild your home at current construction prices. It’s one of the best ways to protect against being underinsured and ensures your family isn’t left with a financial gap if disaster strikes.
If your home is older, rebuilding after a loss may involve more than simply replacing what was there. Local building codes and ordinances change over time, and you may be required to update wiring, plumbing, or structural features to meet today’s standards.
Standard policies don’t usually cover these additional costs — but ordinance or law coverage does. This option pays for the extra expense of bringing your home up to code during repairs or reconstruction. Without it, you could be paying thousands more just to meet legal requirements, even though the original damage was covered.
Home insurance doesn’t just cover physical property. Many insurers, including Hanford, offer identity theft protection as part of a home policy. With cybercrime and fraud on the rise, this coverage can reimburse expenses related to restoring your identity — things like legal fees, lost wages, and credit monitoring.
It’s an often-overlooked safeguard that can save you stress, time, and money if you ever become the victim of identity theft. For many families, adding this option costs less than a streaming subscription, yet provides significant financial security.
Most home insurance policies have limits on categories like jewelry, fine art, collectibles, or musical instruments. That means if you have an engagement ring, family heirlooms, or a high-value guitar collection, the standard limits may not fully cover their worth.
Adding valuable personal property coverage (sometimes called a rider or floater) ensures these items are protected at their appraised value. It often covers a broader range of risks too, such as accidental loss — like dropping a diamond ring down the drain. If you own items with significant sentimental or financial value, this is a coverage you don’t want to skip.
Most people don’t think about what happens if their home becomes unlivable after a covered loss. Hotel bills, restaurant meals, and temporary rentals can add up quickly, creating extra financial stress on top of an already difficult situation.
Loss of use coverage, also known as additional living expenses (ALE), helps pay for these costs while your home is being repaired or rebuilt. While this coverage is included in most policies, many homeowners underestimate how quickly expenses can add up — especially if repairs take months. Reviewing your coverage limits ensures you and your family won’t have to cut corners or pay out of pocket for extended stays.
The reality is that no two homes — or homeowners — are the same. The right coverage for you depends on your property, your lifestyle, and your budget. The options listed above are some of the most commonly overlooked, but they can make all the difference when the unexpected happens.
At Hanford Insurance, our job is to look beyond the basics and help you customize a policy that gives you true peace of mind. Don’t wait until you’re in the middle of a claim to find out you’re not covered. Take the time now to review your policy and explore whether these coverage options make sense for you.