A homeowners’ insurance policy cannot protect your home from
the whims of the weather or the actions of ill-intentioned people, of course.
However, it can help you pick up the pieces and get your life back on track
after a disaster. If you have adequate coverage, your insurer will reimburse
you for your losses, providing the means to pay for the restoration of your
damaged property.
However, you should be aware of the fact that standard home
insurance policies don’t cover all types of damage – floods, wind, and certain
other perils require special coverage that comes at a higher cost. So, in order
to minimize your exposure to loss, you may want to consider adjusting your
insurance plan. To do so, you need to know exactly what regular homeowner’s
insurance does not cover.
Floods
Damage resulting from burst pipes and overflowing water from
your plumbing system is usually covered by standard home insurance policies.
However, loss from “rising surface water” occurring outside your home, such as
overflowing rivers or torrential rain, is not covered.
So, if you live in a flood plain (near a creek, lake, or any
large body of water), you may want to consider purchasing additional flood
insurance. You can obtain a flood insurance policy through the National Flood
Insurance Program or a private insurance company.
Sewer Backups
Homeowner's insurance coverage excludes floods, sewage
backups, mold, and other common perils.
Flooding from overflowing rivers or torrential rain is not
covered by standard homeowner’s insurance policies.
When a sewer backs up into a home, it can cause substantial
damage to floors and walls, as well as to furniture and electrical appliances.
Besides, sewage backup poses a great threat to the health and safety of the
inhabitants, as it contains harmful bacteria that can spread infection or
disease.
Standard homeowner’s insurance, however, does not cover
sewer backups. In most cases, you will be able to get extra insurance for this
type of damage as an endorsement to your policy. In fact, sewer-backup damage
can be covered for an additional premium of just $40 to $50 per year.
Mold
Homeowner’s insurance policies generally offer limited or no
coverage for mold damage. If mold growth has appeared due to excessive moisture
resulting from long-term leaks, poor home maintenance, construction defects, or
naturally occurring floods, you will not be reimbursed for your losses.
However, your policy may cover mold remediation costs if the problem has been
caused by a sudden leak in the plumbing system (provided that you take
immediate action to fix the problem and prevent further damage).
Earth Movement
To get adequate coverage for these disasters, you need to
purchase a separate policy . Insurers in Florida however, are required to provide coverage for
sinkhole damage as it is very common in these states. In Florida the basic coverage
is called Catastrophic Ground Collapse.
Infestations
Insects (termites, bedbugs, etc.), rodents (mice, rats,
squirrels, etc.) and other vermin can cause severe damage to support beams and
other wood features, slowly devastating your home. However, this type of damage
is not covered in a home insurance policy, as getting rid of infestations and
fixing the damage left behind is considered to be the responsibility of the
homeowner as a part of the regular home maintenance process.
Damage From Pets And Domestic Animals
Your homeowner’s insurance will not pay for restoring
household items or structural elements damaged by pets and other animals
residing on your property.
When it comes to dogs, in particular, matters are even more
complicated. Most insurance companies provide liability protection in case your
dog bites another person,(this coverage is not always automatic) but don’t
cover damage to your property (chewed or scratched couches, furniture legs,
rugs, etc.) Have in mind though that hostile or dangerous dogs may not be
covered at all or could even prevent you from getting approved for a policy
(some companies actually blacklist breeds that are known for their aggressive
behavior, while others don’t deny coverage based on breed alone but look at an
individual dog’s history of aggression). Therefore, it is a good idea to ask
about pet coverage in advance if you have a dog.
Cracks And Foundation Settling
Settling, cracking, bulging, or expansion of pavement, walls
and foundations are not covered by insurance policies. Cracking and settling resulting from earth movement or
shift are excluded from homeowner’s insurance.
Wind Damage In Hurricane-Prone States
Make sure your insurance policy covers the most common
perils in your area.
Wind damage is among the most common types of damage a home
may sustain.
Homeowner’s insurance coverage includes wind and tornado
damage, but if you live in a high-risk area for hurricanes (along the Atlantic
or Gulf coasts, for example), you may need to buy separate windstorm insurance.
Have in mind that insurers usually charge a special wind deductible (instead of
a flat amount, these deductibles are calculated as a percentage of your home’s
insured value – usually between 1% and 5% – so you may have quite a large
amount of your claim payment cut as a result).
Power Failure Or Power Surge
Loss due to power failure or power surge is not covered by
the regular homeowner’s insurance policy. The only exception is when a
lightning has caused power surge to occur – in such a case, your insurer will
reimburse you for your loss as lightning is a covered peril.
Nuclear Accidents
Home insurance does not provide coverage for nuclear
accidents but nuclear power companies are required to provide their own
liability insurance to cover eventual damages within the area of a power plant.
Besides, the Price-Anderson Act from 1957 compensates people in the United
States for any damage or injuries resulting from a commercial nuclear accident,
including bodily injury, sickness, and property damage. In addition, everyone
evacuated from an affected area will be reimbursed for reasonable living
expenses.
Acts Of Terrorism And War
Standard homeowner’s insurance doesn’t specifically cover
damage from war or acts of terrorism, but the typical policy does cover the
homeowner for damage due to explosions, fire, and smoke (the most common types
of damage a home may sustain under such circumstances).
Losses Resulting From Failure To Protect A Property After A
Disaster
Discuss the specifics of every individual case with your
insurance agent.
You will not be reimbursed for any losses resulting from
negligence on your part, such as failure to protect and maintain your property.
In the unfortunate event of a natural disaster or an act of
vandalism, it is the responsibility of the homeowner to take quick and
efficient measures to prevent further damage to the property. Therefore, you
will not be reimbursed for any losses resulting from failure to protect your
home. It is recommendable to call a professional restoration company
immediately after a disaster, as the experts will be able to salvage the
remaining part of your property and prevent the damage from spreading. Besides,
they will work in close cooperation with your insurance agent to ensure a
smooth and beneficial claims process.
Intentional Damage Caused By A Homeowner
Intentional damage to the property caused by the homeowner,
as well as any damage resulting from negligence on the part of the homeowner,
is not covered by home insurance.
General Wear And Tear Or Defective Construction
Home insurance does not cover general wear and tear as it is
the homeowner’s responsibility to perform basic maintenance and keep his/her
property in a good condition. Manufacturer’s defects are not covered by a
homeowner’s insurance policy, either.
Have in mind that there are some more exclusions to
homeowner’s insurance coverage in case your home has been vacant for more than 14
days or if it is still under construction:
vandalism and malicious mischief;
freezing of pipes;
theft, etc.
Insurance for structures used for business, as well as for
any cars, vans, motorcycles, aircraft, boats, or other vehicles you own, must
be purchased separately.
These are just examples of policy exclusions. Please refer to your own home insurance policy for specific coverage and exclusions.
Bonus advice: Make sure you discuss each particular case
with your insurance agent – even though your policy may not cover you for an
excluded event, you may still be covered for losses resulting from it.
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