Most homeowners tend to think that their homeowner’s insurance will pay for any losses that occur. That’s not always true. There are many things your homeowner’s policy may not cover. The truth is, there are
If you own a home with a mortgage or lien, then you are required to have insurance. And, even if you don’t owe a dime on your house, it is still crucial that you carry full coverage insurance. But, have you taken the time to read your policy?
You might think your policy covers anything that may happen on your property. But, that is not necessarily true. There are many events that your policy often does not cover, which can leave you with a financial headache.
WHAT HOMEOWNER’S INSURANCE DOESN’T COVER
Flooding
Your basic homeowner’s insurance policy does not cover flooding. If your house is in a floodplain, your lender may require that you purchase flood insurance. However many people who do not live in a required area, do not have this additional coverage.
You might do some research to see if this is coverage you need. Visit the National Flood Insurance program to learn more about adding this to your insurance line up.
Earthquakes
Many people probably feel they do not need to worry about earthquakes. However, we have seen more instances of this in “unusual” parts of the country. I’ve even felt earthquakes right here in Missouri!!
Most policies do not cover damage as a result of an earthquake. If you need this coverage, it will require a separate policy or rider. It is usually only an issue in areas which face higher risk, but you can ask your agent about this and if you should purchase it or not.
Animal Bites
Animal bites may or may not be covered. Many insurance policies exclude coverage on more aggressive breeds. Call your agent to find out your coverage and if you aren’t, what you need to do.
Sewer Backups
Having lived through a sewer backup myself, it can be expensive. Fortunately for me, my policy covered everything. If did not have coverage, we would have been out more than $10,000 for clean up!
If a sewer backs up into your home, your insurance plan may not cover the damage. Ask your agent about adding in additional coverage.
Sinkholes
While they can happen anywhere, residents of Missouri, Texas, Florida, Alabama, Kentucky or Tennessee or more likely to suffer from sinkholes. If you live in Florida or Tennessee, your insurance may cover catastrophic ground cover collapse (also known as sinkholes).
Unfortunately, finding this coverage outside of Tennessee and Florida can be difficult. As your local agent about where to find coverage.
Termites
Unfortunately, this is rarely covered. Those little bugs can also do a LOT of damage! The only way you can cover these costs is out of your own pocket.
Simultaneous Events
If you happen to suffer severe wind damage followed by flooding, you may not be covered. The reason? Floods are not covered under your policy. It is what the insurance world calls “anti-concurrent causation.” This is when two events happen at the same time. If one is not covered, then both are usually not covered.
Burst Pipes
If a pipe bursts, you will have a mess. Your homeowner’s policy may often cover the cleanup and damage, but they won’t cover the cost of repairing the pipe itself. But, even then, you may not be covered.
If the damage is due to homeowner negligence, such as not leaving the heat on when away on a winter vacation or forgetting to drain a pipe, then it may not be covered. Make sure you take the necessary steps when you are going to be away (turn off the water on vacation and leave a small stream running while away during cold vacation months).
Read more: What to Do if Your Pipes Freeze
Mold
Mold is horrible and not only is it ugly, but it can also actually make you sick. Check your policy to know for sure. If you ever have water in your home for any reason, get it cleaned up as soon as possible to prevent mold growth.
Identity Theft
Identity theft coverage is becoming increasingly necessary and is now often included with a homeowner’s policy. However, it may not be the case for everyone.
Some companies will cover the costs to get your credit restored while many will not. Make sure you take the necessary steps to make sure you and your family are safe when shopping and surfing the net.
Trampolines
Before you run out and buy that trampoline for the backyard, check with your insurance company. Injuries sustained on this piece of equipment may not be covered. In fact, some companies will even cancel your policy if you have one on your property.
Acts of Terror and War
If your home happens to suffer damage due to a terror attack or war event, be it biological or chemical, your policy won’t be able to help.
No matter who you use for your insurance, you need to make sure that you talk about these instances and add in those riders or purchase additional insurance as needed. Make sure you take the time to read your own policy so that you have no surprises.
