Most people find themselves very confused and overwhelmed when comparing homeowners insurance quotes. It does not matter if this is your first time signing up, or if you are simply looking to switch companies, the decisions really never get any easier. Most insurance companies offer basic coverage policies that are quite similar regardless of location. Elements like dwelling, liability and personal property are generally included. However, many people do not realize that all potential loses are not automatically covered in a basic policy. Below are five elements that need to be included and examined in any homeowners policy.

Flood Insurance

It does not matter if you live in the driest area of the country; you need flood insurance. Quite often, floods are caused by development or new construction. Weather is not always to blame. You may be interested to learn that only two inches of water in a 1,000-square-foot home can cause more than $10K worth of damage. This is coverage worth having, and you can consider yourself fortunate if you never have to use it.

Replacement Cost Coverage

Most people don’t realize how much it would cost to repair or rebuild a home and also replace all their belongings. You may think you have enough coverage, but will it actually cover everything. Without replacement cost coverage, you will be responsible for paying the balance. For example, if the dwelling limit in your policy is $200K, but you lost everything in a tornado and it will cost $300K to clean away the debris, rebuild and replace, then you would be responsible for the extra $100K. This coverage included in your homeowners insurance policy eliminates this concern.

Code Upgrade Coverage

A policy that include code upgrade coverage is ideal, if replacement coverage is a little out of your budget. Most basic policies only cover cost to repair or rebuild the way the home was before, so if building codes have changes or different materials are now required, you would be responsible for these additional fees.

Expanded Theft Coverage

Do you keep items like expensive tools, golf clubs or other similar items in your vehicle either consistently or on occasion? Do you know that most policies don’t cover these items if they are stolen from your vehicle when not parked on your property? Expanded theft coverage ensures the property is covered.

Scheduled Personal Property

The coverage limit is about all you are going to receive to personal property affected by damage, destruction or theft. However, expensive items don’t always receive their full value on a basic coverage policy. Most insurance companies offer separate limit for items such as jewelry, artwork, collections and precious metals. If you have items like this in your home, choose a policy that allows you to list each item individually to ensure that they are covered for their face value.