Little-Known, Rarely Used Perks of Homeowners Insurance

There's value in lesser-known policy perks.

It's easy to think of insurance as a relatively new expense, but the first historical record is from China, around 3,000 B.C. It appears that people have always wanted the peace of mind that coverage brings. What's surprising about modern homeowners insurance is how many things it covers -- things we don't often consider.

Unidentified falling object

If you want to tell your insurance company that an ET damaged your roof, you'll probably need photographic evidence, but plenty of other claims will likely be covered. For example, if a piece of a satellite, meteorite, ash from a volcanic eruption, or a lit bottle rocket damages your home, you have a legitimate claim. 

Terrorist attack

Nearly all homeowners insurance policies exclude coverage for acts of war. However, you're probably covered if your home or property is ever damaged by an incident that fits into the FBI's definition of domestic terrorism. 

For reference, here's the FBI's official definition of domestic terrorism: "Violent, criminal acts committed by individuals and/or groups to further ideological goals stemming from domestic influences, such as those of a political, religious, social, racial, or environmental nature." 

Theft while away from home

Let's say you're on vacation, and your laptop, jewelry, or expensive luggage is stolen. Your homeowners insurance follows you as you travel, and the loss will be covered. The same is true if someone breaks into your vehicle, storage unit, or child's school locker and swipes belongings. In fact, if your child is away at college, there's a good chance the belongings in their dorm room are covered. 

Spoiled food

Your policy also protects you against food loss due to an unexpected loss of electricity. There are a couple of exceptions. If the electricity is cut off because you forgot to pay the bill or someone in the household left the door to the freezer open and food was spoiled, you're on your own.

Identity theft

Ask anyone who has ever had their identity stolen, and they will tell you it's a nightmare. It can take months to convince your bank and creditors that you're not the one making purchases or withdrawals. Some homeowners policies cover identity theft, paying legal fees, lost wages, and the amount spent restoring your credit. 

Legally required home upgrades

Let's say your township decides you need a particular type of roof or that all homes must have egress windows in the basement. Your homeowners insurance policy may cover legally required upgrades. There's typically a limit to how much they'll pay, but it's good to have some help covering the cost. 

Drone damage

Many things can go wrong if you (or someone else in your household) fly a drone as a hobby. It's not unusual for drones to hit someone else's house, a neighbor, or a pet. Homeowners insurance may help cover the medical cost or cost of repairing someone else's home. It may even help you pay the legal fees if you're sued for infringing on a neighbor's right to privacy. 

Frozen sewage

Some homeowners insurance policies help make things right if sewage pipes freeze and burst, causing damage to your home. 

In-home business

If you run a business from home, it pays to determine how much your policy covers if your office, materials, or products are damaged. 

Grave markers

Even though a grave marker is not on your property, it represents someone from your household. If a marker (or urn) is damaged or vandalized, it's probably covered. 

Stampede

For fun, we thought we'd add the fact that most policies protect your home from damage caused by wild animals. So, if an elephant escapes from the zoo or a herd of horses damages your home or property, you've got coverage. The same cannot be said if a gang of opossums or other rodents attack your home.   

The most important thing to remember when considering homeowners insurance is that coverage varies by policy. Part of buying a policy is determining what you'd like to be protected against and making sure the coverage is available.