Homeowner’s insurance is a vital part of owning a home and protecting your family from unexpected financial losses. With the right coverage, you can rest easy knowing that your home and personal property are secure from unforeseen risks. However, there are many add-on options to consider when purchasing a policy. These add-ons can help provide additional coverage and ensure that you have the right level of protection for your home and possessions. In this article, we will discuss six add-ons to consider when purchasing homeowner’s insurance, so you can make an educated decision that best fits your needs. Whether you’re a first-time homebuyer or a seasoned homeowner, these add-ons can give you peace of mind knowing that your home is well-protected.

What is Homeowners Insurance?

Homeowner’s insurance is an insurance policy that covers damage to your home, your property, and any individuals who may be injured while on your property. It also provides liability coverage if someone sues you as a result of an injury sustained on your property. Homeowner’s insurance policies typically cover loss from 10 common hazards: These 10 common hazards account for 94% of all insurance claims. Since homeowners insurance covers so many potential losses, it is often referred to as a catch-all policy.

Add-On #1: Personal Property Replacement Cost

Personal Property Replacement Cost (PP replacement) is an add-on option that provides extra coverage for your personal belongings. The standard homeowner’s policy covers the cost to repair or replace your belongings up to their actual cash value (ACV), which is the price at which the items were purchased. 

This add-on is meant to replace the items at their current value and not what you originally paid for them. If your belongings are ever stolen or damaged beyond repair, the PP replacement policy will pay out the cost to replace them with new items that are similar in quality and function. This coverage is helpful if you own high-priced items, such as jewelry or artwork, that are difficult to replace. 

As an example, if you are concerned about keeping your jewelry safe, you might consider Zillion’s jewelry insurance to keep your valuables protected. You can also purchase this type of coverage for items that are difficult or impossible to repair, such as antiques, rare books, or collectibles. PP replacement costs vary based on the item and the company offering the policy. Be sure to thoroughly research this add-on and shop around for the best price and coverage.

Add-On #2: Liability Coverage

Liability coverage can protect against lawsuits filed by people who are injured on your property. These injuries could include cuts, broken bones, burns, or sprained muscles. If the injured party wins the lawsuit, liability coverage will cover the costs associated with the case. Liability coverage also covers the legal fees that come from defending yourself against the suit. 

Liability coverage is not always included in standard homeowner’s policies, but it is a great add-on to consider for added protection. Liability coverage also helps protect your assets, such as your home or savings, from being seized by creditors. It’s important to note that some homeowner’s policies have a minimum liability coverage requirement. If your policy does not have enough coverage, you can add on a liability policy to make up the difference.

Add-On #3: Identity Theft Protection

Identity theft protection is another vital add-on to consider when purchasing a homeowner’s policy. These policies help reimburse you for the cost of repairing your credit after identity theft occurs. Identity theft protection also covers the cost to hire an attorney and pay for background checks when applying for new lines of credit. 

Identity theft protection is a useful add-on for any homeowner, but it is especially useful for people who are regularly employed in industries with a higher risk for identity theft, such as healthcare, finance, law enforcement, and government. These industries have higher instances of identity theft because of the nature of the work, such as collecting and storing sensitive information. 

If you regularly work in a high-risk industry, identity theft protection is a must. Identity theft protection can also be helpful for those who have been a victim in the past. Identity theft can have a lasting impact on your credit and make it more difficult to qualify for new lines of credit. This can make it difficult to obtain a mortgage or refinance a loan. Identity theft protection can help ease the burden of these costs and expedite the process of clearing your credit.

Add-On #4: Sewer and Drain Backup Coverage

Sewer and drain backup coverage is a vital add-on for any homeowner living in a region susceptible to flooding. This coverage protects you against damages caused by sewage or other contaminants that back up into your home via the plumbing. If your pipes are clogged or damaged, this coverage will replace the damage caused by the backup. 

This coverage can save you from footing the bill for extensive repairs and help you avoid being forced to move out of your home if the damage is extensive. Sewer and drain backup coverage also covers any injuries that occur as a result of the backup. This includes injuries inflicted on your property as well as illnesses resulting from exposure to contaminants. 

The best way to determine if you need sewer and drain backup coverage is to check the history of flooding and damage in your area. If you are in a region susceptible to flooding, consider this add-on and talk to your insurer about the best ways to include it in your policy.

Add-On #5: Earthquake Coverage

Earthquake coverage is another important add-on to consider when purchasing a homeowner’s policy. This coverage protects you and your home against damages associated with an earthquake. If your house or property is damaged as a result of an earthquake, this coverage will help pay for repairs and assist with moving costs if needed. 

Earthquake coverage is recommended for homeowners in regions prone to earthquakes. However, it is important to note that not all insurers are willing to provide this add-on. It is important to do your research and find an insurer that provides this coverage.

Add-On #6: Additional Living Expenses

Additional living expenses coverage is a broad-ranging add-on that can prove valuable in many situations. This coverage pays for the cost of temporarily relocating. This can be helpful following a natural disaster, such as a flood, or a hazardous weather event, such as a hurricane. Additionally, this coverage can help you pay for the cost of temporarily relocating if your home needs repairs following damage caused by a covered peril, such as a fire. 

Additional living expenses coverage can also help you pay for the cost of relocating while your home is being repaired following a non-covered peril, such as a water leak. This coverage can help ease the financial burden of these expenses, such as the cost of renting an apartment, hotel bills, and car rentals. This coverage can prove especially helpful for homeowners who cannot complete necessary repairs within a reasonable timeframe.


Homeowner’s insurance is an essential part of protecting your home and family. There are many add-on options to consider when purchasing a policy. These add-ons can help provide additional coverage and ensure that you have the right level of protection for your home and possessions. Whether you’re a first-time homebuyer or a seasoned homeowner, these add-ons can give you peace of mind knowing that your home is well-protected.