by Ed Sneneh, Chicago Auto & Home Insurance Agent

Most standard homeowners insurance come with standard coverages that may exclude certain important people that some people need. It is very important that people read their insurance policy to determine the extent of coverages, what is and what is not covered. The following is a list of coverages that may not be included in your standard homeowners policy:

Guaranteed Replacement Cost on the Structure is a rider to homeowners insurance policies according to which the insurance company will pay any amount to fix covered damages to the structure of the house (dwelling), using new materials of similar quality and grade, and without regard to depreciation.

For certain older homes, or homes that are made with materials that are hard or unnecessary to replace (obsolete or ornate structure such as rock foundations), Functional Replacement Cost may be the choice. According to the Functional Replacement Cost, the insurance company will use with construction materials that serve the same function, in the event of damage to the insured property.

Replacement cost calculator is a table most insurers use to establish rebuilding cost of the insured's dwelling at a particular point in time. The calculator takes in account the geographical proximity of the house, square footage of living space, amenities and attachments to the house,, and grade of construction material used. Each company has its own calculator and may generate different replacement cost amount, but some companies will accept results of calculations from other companies.

Guaranteed Replacement Cost on Content is a rider to homeowners, condo and renters insurance where Personal Property coverage is offered. In the event of a covered loss, the insurance company will pay according to whatever it cost to replace the damaged personal property due to a covered loss.

Backup of  Drain or Sewer or Sump Pump. This rider is essential for homeowners with finished basements. Any damage to the content of the house because of drain or sewer back up for any reason is not covered unless specifically included in the policy. The company according to this rider will pay, up to the rider's limit, for damages resulting from the backup of sewer or drain for any reason including the failure of sump pump.

Scheduled Personal Property is a rider which allows homeowners to include in the insurance coverage certain personal property items that are not included under standard provisions.  Expensive cameras, fish tanks, etc. are not normally covered under standard policies, but coverage may be added by listing the policy in a Scheduled Personal Property rider.

Homeowners need not to assume that "everything" is covered under their standard homeowners policy. Many essential things need to be endorsed for property to be properly covered. Cost of endorsements vary from one company to another, and while some companies may charge little for a specific rider may charge much higher for another rider. Allowing an independent insurance agent to procure several quotes may be the key solution in order to compare apples with apples.

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