What is Additional Premises coverage in Homeowners Insurance?

Actual Cash Value in Homeowners Insurance?


1. How does Additional Premises coverage protect a homeowner’s property?

What is Additional Premises Coverage in Homeowners Insurance?

Homeowners insurance is an insurance policy that covers a residence and its contents in the event of damage or theft. Additional premises coverage is one of the most important elements of a standard homeowners insurance policy.

What Does Additional Premises Coverage Insure?

Additional premises coverage provides financial protection to a homeowner in the event of damage to the home caused by wind, fire, storms, theft, vandalism, and other common hazards. In addition, it can cover the costs associated with rebuilding your home, restoring the premises to its original condition, and replacing personal belongings that were damaged or destroyed in the covered event.

What is not Covered?

Additional premises coverage does not provide coverage for certain types of losses, including:

    • Damage caused by floods


    • Structural defects or damage due to wear and tear


    • Damage caused by intentional acts or negligence of the homeowner


    • Nuclear hazards


    • Earth movements, like earthquakes


It is important to review your policy in detail to understand what is and is not covered by your additional premises coverage.

How Much Does Additional Premises Coverage Cost?

The cost of additional premises coverage will vary depending on the type and amount of coverage purchased. Factors such as the size of the dwelling, the location, and the amount of coverage purchased will all affect the cost. Insurers typically offer discounts for purchasing additional coverages, such as liability coverage or additional personal property coverage.

How to Choose Additional Premises Coverage?

Additional premises coverage is designed to provide additional financial protection to homeowners who have taken the proper steps to protect their homes from hazards. To choose the best coverage, you should consider the following factors:

    • The value of your home and its contents


    • The likelihood that you may experience a covered event


    • The type of coverage you need (e.g., personal property coverage)


    • The cost of premiums and how they compare to other policies


    • The level of customer service you can expect


Making an informed decision regarding your additional premises coverage is essential to ensure that you are adequately protected. If you have any questions, contact your insurer to discuss your homeowners insurance options.

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