When purchasing homeowners insurance policies, far too many people simply look at the bottom line. As a result, it is not uncommon for homeowners to be poorly educated on exactly what type of coverage their policy actually provides. All too often it is not until they need to file a claim that many homeowners find out that their standard policy does not include the coverage they need. In other cases, individuals may not even attempt to file a claim simply because they don't realize that their homeowners insurance actually provides coverage for the situation they are in.

That is why this article seeks to explore some of the most common types of insurance coverage that are either excluded from or included in a standard homeowners insurance policy which many homeowners may be unaware of.

Commonly Overlooked Exclusions

Flooding

Perhaps the most commonly overlooked exclusion of standard homeowners insurance policies is the peril of flooding. In order to ensure you are protected against the potentially catastrophic costs associated with even a minor flood in your home, you will need to either purchase a stand-alone flood policy or an add-on policy for your standard homeowners insurance.

Home-Based Business

If you run a business out of your home, you should know that your homeowners insurance will likely exclude coverage for any items related to your business. While some companies will allow you to purchase a policy add-on to cover these items, most companies will ultimately require you to purchase a separate policy to cover your business.

Hurricane

While most natural disasters are covered by standard homeowners insurance policies, hurricanes are often an exception to this rule. In most cases, you will be able to add this peril to your coverage at an additional cost. The cost associated with this coverage can vary dramatically based on the risk of hurricanes where you live.

Commonly Overlooked Inclusions

Spoiled Food

People often fail to realize that their homeowners insurance policy actually provides coverage for the food in their fridge and freezer if this food spoils as the result of a power outage or mechanical failure. While this coverage will often have a relatively low maximum payout amount, it certainly beats covering the full out-of-pocket expense on your own.

Lodging Expenses

It simply is not always safe to remain in your home while certain repairs are being completed. If your home suffers damage that forces you to leave home while it is being repaired, your homeowners insurance will often cover all or a portion of your lodging costs while you are away from home. Your policy may also provide you with a daily stipend during your stay away from home in order to help cover the cost of food and other necessities.

Personal Property Located Away From Home

People routinely realize that their homeowners insurance covers their personal belongings while they are inside their home, but many of these same people do not realize that this coverage extends to locations outside their home as well. For example, if you choose to take your laptop with you and it is stolen out of your vehicle, you may be able to file a claim against your homeowners policy in order to cover this loss.