When you think of home insurance, you probably think about the safety net that is there in case of a fire or a robbery. However, many people under-insure their homes; in fact, many Americans only have enough insurance to cover 78% of home rebuilding costs. People feel safe getting a policy that covers the value of the home when it was purchased. This is dangerous, not only because the real estate market fluctuates over time, but also because there are somethings you will need home insurance for that could exceed the cost of just replacing your home. Here are a few things you might not have thought about when it comes to choosing a home insurance policy.

1. Medical bills and punitive damages.

Wait, isn't that what medical insurance is for? Well, in your case yes. But if someone is injured on your property and they have outstanding medical bills, they can sue you to help pay for the damages. That's why it is important to make sure that you have some type of liability coverage in your homeowner's insurance policy, because it will protect your personal assets in the event that a judge orders you responsible for the injuries of another person. Note, however, that your insurance protects you from lawsuits, but does not protect you from injury costs on your own property. You can't submit a claim on your own health insurance to pay for medical expenses.

2. Landscaping.

If someone jumps the curb and crashes into your yard, your house may be spared from damage, but your yard will not be. The cost of landscaping can be high, especially if you have trees and hardscapes installed in addition to the grass. Your insurance can help to pay for replacing trees, laying new sod, and fixing damaged fountains or retainment walls; in some cases, these can be just as costly to replace as broken windows or damaged siding.

3. Belongings of a child in college.

Wait, so even if your child isn't living at home, their stuff is still covered by home insurance? The answer can be yes. If your child lives on campus and is still part of your household, then their stuff can count as your property—even though it is being used by them. Because theft is common on college campuses, you should make sure, if you have kids in college, that your policy has provision and enough coverage for those belongings. These things would also be covered in the case of a fire or another disaster. Replacing things like laptops and smartphones can get pricey if you don't have the help. 

4. Increased costs of building materials.

The real estate market aside, the cost, brick by brick, of replacing your home after a disaster will simply be more than it was when you first built or purchased your home. Inflation continues to drive material process upwards, so the hardwood floors or plumbing fixtures-- even if they are exactly the same as before-- will be more costly to replace five years down the road. 

 When choosing a policy, make sure you have a promise in writing from the insurance company that the quoted amount and the subsequent charges guarantee you 100% coverage in the future. This way, if your insurance is maxed out, the insurance company will be responsible for misinformation, and you will be able to take legal action against them in order to restore your home fully. 

You can avoid the dangers of underinsurance by making sure you review policies carefully. It is good to shop around for the best rates, but the best rates may not offer the flexibility or the coverage you actually need for a house like yours. Sometimes, a more expensive policy can save you thousands of dollars in the future. Click here for more information.