Did you know there are events your home owner’s insurance may not cover? Learn which might leave you open for loss.
If you own a home, you have insurance (or you should). You know that it covers your home if there is a fire or tornado. However, do you know there are things which are not usually covered?
It is the truth. Your homeowner’s insurance will protect your from many things. But, many items need either their own policy – or may not be covered at all.
1. Flooding
This is never covered under a basic homeowner’s insurance policy. If you live in a flood plain, you probably have 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.
2. 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.
Many policies do not cover damage as a result of an earthquake. If you need this coverage, it will require a separate policy or rider. This 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.
3. Animal Bites
Most of the time, your homeowner’s insurance does not cover any sort of animal bite. This is very true with some of the more aggressive breeds. You need to check your policy to see if you are covered. If you are not, find out what you can do to cover yourself should this ever happen to you.
4. Sewer Backups
Having lived through a sewer backup myself, I know that this is an area which may or may not be covered. Fortunately for me, I was covered. his is one thing that actually happened to me.
If a sewer backs up into your home, your insurance plan may not cover damage. Ask your agent about adding in additional coverage.
5. Sinkholes
If you reside in Missouri, Texas, Florida, Alabama, Kentucky or Tennessee, you are more likely to have this potential issue arise. Purchase an additional rider to your policy to add coverage from sinkholes.
6. 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.
7. Simultaneous events
If you happen to suffer severe wind damage and then your home floods, you may not be covered. The reason? Flood is 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.
8. Burst pipes
While many times a burst pipe is covered, there are times when it may not be. If it 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/or leave a small stream running while away during cold vacation months).
Read more: What to Do if Your Pipes Freeze
9. Mold
Mold is horrible and not only is it ugly, it can actually make you sick. You might check with your policy to see if it is covered. If you ever have water in your home for any reason, get it cleaned up as soon as possible to prevent mold growth.
10. Identity Theft
This is actually slowly changing with many companies, but some do not cover this. Some companies will cover the costs to get your credit restored while many will not.
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.
Tracie is a stay at home mom to three young children; ages 8, 9 and 12. In November 2007, she and her husband decided to eliminate their debt and made many changes in their lifestyle to do just that.
