Hidden Protection: Homeowners Coverage You May Not Know You Need

Most homeowners understand the basics of their insurance policy—coverage for fire, theft, and liability. However, standard policies often leave gaps that could leave you financially vulnerable for events many may not even consider.

For example, one in 50 insured homes files a water damage or freezing claim each year, costing an average of $11,650 per claim. In addition, the Hartford estimates more than 60% of home-based businesses lack adequate insurance coverage.

Many homeowners lack proper protection for common and costly events. Often this is because they were unaware their homeowners policy included specific exclusions for these underappreciated exposures.

Here are the coverages you may not know you need—but absolutely should consider.

Sewer and Water Back-Up Coverage

Standard policies typically exclude damage from backed-up sewers or drains. This coverage is especially important for:

Homes with basements
Properties with sump pumps
Older properties with aging pipes
Areas with combined storm and sanitary sewer systems

For a modest additional premium, this endorsement can protect you from potentially tens of thousands of dollars in clean-up and restoration costs.

Cyber Liability Protection

As our homes become increasingly connected, cyber risks grow. The average home has 11 smart devices connected to the home network at any given time. This means there are more security vulnerabilities than ever before.

This newer coverage helps with:

Data breach expenses
Cyberbullying legal defense
Recovery costs after identity theft
Ransomware attacks on home systems
Fraudulent wire transfers or online purchases

Many homeowners don't realize their standard policy offers zero protection against these modern threats.

Ordinance or Law Coverage

If your home requires rebuilding after a covered loss, local building codes may require upgrades that standard insurance won't cover. This endorsement pays for:

Energy efficiency improvements
Mandated accessibility modifications
Complete demolition if partial repair isn't permitted
Code-required electrical, plumbing, or HVAC upgrades

Home Business Coverage

Working from home? Your standard policy provides minimal coverage for business equipment and no liability protection for business activities. Proper coverage protects:

Business-related liability claims
Expensive equipment and inventory
Lost income if your home becomes unusable

Service Line Coverage

This often-overlooked option covers repair or replacement of underground utility lines on your property, including:

Gas lines
Electrical wiring
Internet/cable lines
Water and sewer pipes

Repairs often involve expensive excavation that can cost thousands of dollars without proper coverage.