Introduction
Having proper homeowners insurance is critical for securing your home against unexpected financial losses. As a homeowner, it is important to understand what your policy covers and what it doesn’t. Although most insurance policies cover common hazards like fire, theft, and water damage, there are certain areas that are not covered by most policies. In this article, we will explore the areas that are often overlooked and how to obtain proper coverage for them.
5 Frequently Overlooked Areas Not Included in Homeowners Insurance Policies
While most homeowners insurance policies provide coverage for common hazards, there are several areas that may not be covered. Here are the top five areas that homeowners may not realize are not included in their insurance policy:
- Flood Damage: Most homeowners policies do not cover damage caused by flooding. Homeowners who live in areas prone to flooding should consider purchasing a separate flood insurance policy.
- Earthquakes: Earthquakes are not typically covered by homeowners insurance policies. Homeowners who live in areas prone to earthquakes should consider purchasing a separate earthquake insurance policy.
- Sewage Backups: Sewage backups are not typically covered by homeowners insurance policies. Homeowners who are concerned about sewer backups should consider purchasing additional coverage or a separate policy that specifically addresses this issue.
- Mold: Mold damage is not typically covered by homeowners insurance policies. Homeowners who are concerned about mold damage should consider purchasing a separate policy that specifically addresses this issue.
- Termite Damage: Termite damage is not typically covered by homeowners insurance policies. Homeowners who are concerned about termite damage should consider purchasing a separate policy that specifically addresses this issue.
It is important to note that some insurance companies may offer additional coverage for these areas, but it may come at an additional cost. Homeowners should review their policy and speak with their insurance agent to determine if additional coverage is necessary.
Don’t Get Caught: The One Area Homeowners Insurance Fails to Protect
The one area that homeowners insurance typically does not cover is damage caused by pests, such as mold or termite damage. This is because these hazards are considered to be a result of negligence, and insurance policies are designed to protect against unexpected events. Homeowners who are concerned about pest damage should take preventative measures such as regular inspections or treatments to avoid costly repairs in the future.
Beyond Your Basic Homeowners Insurance: Top 5 Areas to Consider Additional Coverage For
While basic homeowners insurance policies provide coverage for common hazards, there are several areas that may require additional coverage. Here are the top five areas that homeowners may want to consider obtaining additional coverage for:
- Personal Injuries on Your Property: Most homeowners insurance policies provide liability coverage, but this coverage may not be sufficient if someone is injured on your property. Homeowners should consider obtaining additional liability coverage to protect against lawsuits stemming from injuries.
- Expensive Jewelry: Most homeowners insurance policies provide limited coverage for jewelry. Homeowners who own expensive jewelry should consider obtaining additional coverage or a separate policy that specifically addresses this issue.
- Home Renovations: Homeowners who are renovating their property may require additional coverage to protect against damage to their property during construction. Homeowners should speak with their insurance agent to determine if additional coverage is necessary.
- Home-Based Business: Homeowners who operate a business from their home may require additional coverage to protect against liability or damage to their property. Homeowners should speak with their insurance agent to determine if additional coverage is necessary.
- Pools, Trampolines, and Playsets: Homeowners who have pools, trampolines, or playsets on their property may require additional liability coverage to protect against injuries. Homeowners should speak with their insurance agent to determine if additional coverage is necessary.
The One Thing Most Homeowners Don’t Realize Their Insurance Doesn’t Cover
One area that most homeowners do not realize is not covered by their insurance is damage caused by a guest in their home. If a guest damages your property, your insurance policy may not provide coverage. However, homeowners may be able to obtain coverage through a separate endorsement to their policy. Homeowners should speak with their insurance agent to determine if additional coverage is necessary.
Insuring the Uninsurable: What Homeowners Need to Know About Areas Not Covered by Insurance
There are certain areas that are considered uninsurable, such as acts of war or acts of God. These events are typically excluded from insurance policies because they are considered to be unpredictable and uncontrollable. However, homeowners can take preventative measures to protect themselves in case of these events. For example, homeowners who live in areas prone to natural disasters may want to consider strengthening their home’s structural integrity or obtaining an emergency preparedness kit.
Conclusion
While basic homeowners insurance policies provide coverage for common hazards, there are several areas that may require additional coverage. It is important for homeowners to review their policy and speak with their insurance agent to determine if additional coverage is necessary for their specific needs. By taking proactive measures, homeowners can protect themselves against unexpected financial losses and ensure that their home is properly insured.