A Guide To Home Insurance Coverages & Home Theaters

Home insurance protection covers a lot of things and you will want to stay informed on what your insurance plan can properly cover for your policy. One area you will want to look deeper into as a home owner is the protection you have for your home theater.

Advanced technology and home theater improvements have completely changed the way people invest into home entertainment options. If disaster strikes, you want to be sure your home theater has the proper protection in place so you do not need to start from scratch if you need to replace equipment.

Follow this guide to learn about home insurance coverage options and how they directly impact your home theater protection.

Natural Disaster Protection

A lot of natural disasters will cause a large amount of damage to home theater equipment. Floods into your home can destroy equipment and make is unusable. High winds could cause damage to the homes that result in broken equipment, including outdoor options like satellite dishes.

Insurance policies will cover natural disasters generally, but you may want to seek extra protection for specific disasters. For example, you could add extra protection for lightning strikes. Lightning strikes could impact your home theater in several ways and you want to ensure you have coverage for it all.

A lightning strike could direct hit your home and cause damage to home theater equipment. A strike could hit a tree that then falls and hits your home. A lightning strike could also hit from a distance and cause a ground surge. A powerful ground surge could damage electronics like cable boxes and Blu-Ray players.

You will feel much safer knowing you have these extra protections in place if a disaster does strike.

Room Remodeling Coverage

In some cases, you will transform a difference space of your home to create a separate home theater from the living room. For example, you may finish a basement or a garage to accommodate the home theater space. When you convert these areas, you will need to update an insurance company on the new space within your home.

If an insurance company thinks the space is just an unfinished basement, then you may not have the best protection or coverage if damage does occur. You could run into challenges as you seek full compensation for damages in the future.

As you go through updates on your home, keep insurance companies updated so you know what changes you need to go through to ensure you have immediate coverage and don't lose out.

Theft Protection

If a home gets broken into, thieves will typically target both jewelry and high-end electronics. If you suffer from the unfortunate circumstances of a home theft, you will want the value of your items covered. As you make upgrades to your home theater, you can create an inventory of all the equipment you have.

Each time you purchase new equipment, you can add it to the inventory as well. To help receive full value for your equipment, you can file original receipts with insurance companies so they can update your value and know exactly what equipment you have.

Replacement Cost & Cash Value Cost

If you do have to file a claim for damage, your home insurance policy may cover the replacement cost or the cash value cost. Each one will have different outcomes. If you pay for an insurance package with cash value cost, then you will receive a payment worth the current cost of the equipment.

So a TV from five years ago may be worth a little less than when you first bought it. If you opt in for replacement cost policies, then the insurance company will pay you the full amount you originally paid for your equipment. This is why it's important to track your spending and ensure you file everything with the insurance company.

For home policies, contact us at Mike Pierce Insurance. We will help you find coverage that fits your needs and ensure your home theater remains protected for years to come.