A basic homeowner's insurance policy is extensive, but it doesn't cover everything, which is why many people opt to customize their policy by adding option coverage to it. There is a wide range of different types of optional coverages you can add to your homeowner's insurance policy.

#1: Personal Property Endorsement

If you have any expensive personal property, like a very valuable piece of jewelry or an expensive piece of artwork that alone exceeds the personal property limits for your policy, you will need to get a scheduled personal property endorsement. A scheduled personal property endorsement provides you with extra coverage for really valuable items and ensures you would be properly compensated should anything happen to those items.

#2: Water Back-Up Coverage

Water and insurance is a tricky issue. If water damages you home due to an issue with your plumbing — such as a pipe bursting in the winter, a water tank prematurely failing, or your sump pump doesn't work — a water back-up coverage would help to take care of the damage.

Water back-up coverage is designed to cover wayward water from pipes and plumbing fixtures; it does not cover any type of floodwater. Water damage can be expensive to deal with, which is why it is great to have an insurance policy to help you deal with it. 

#3: Business Property

With more people working from home, even part-time, more people are keeping business products in their homes. Business property is considered different than personal property. If your business property is damaged, you are going to need special business property coverage on your homeowner's insurance policy to cover it.

#4: Identity Theft Coverage

With more and more people experiencing identity theft, this type of coverage ensures that you can fight back should this happen to you. With identity theft coverage, your insurance will cover the cost of fighting back against your insurance company. This coverage also generally covers the cost of an identity theft advisor. An identity theft advisor is someone that takes care of some of the heavy lifting involved with recovering from identity theft and how it impacts your life.

There are lots of optional insurance coverage options you can add to your homeowner's insurance policy based on the structure of your life. That is why it is important to discuss your needs with a local home insurance agent and make sure your needs are met.