Introduction
You’ve been taken care of on your home insurance, you have the policy well-filed, and you think that you are being invincible. But book those horses–suppose I say to you that your policy will put you on your own in this or that circumstance? Yep, it’s true! Majority of the folks believe that their house insurance will take care of everything but this is not the case. Stemming as far as natural catastrophes to sudden personal accidents, you will find loopholes in your policies that will cost you thousands.
It is in this article that we shall explore 10 things that your home insurance does not cover but should cover. You will have the knowledge to adjust your policy at least by the end–or you will not suffer some of these ugly shocks.
Flood Damage
There are those who may be in the illusion that their house is not at risk of being flooded, yet flash floods, blocked drains, or rivers can strike anybody. Flood damage is usually not covered by the normal home insurance. It implies that in the case that your basement is flooded and transformed into a swimming pool, you have to pay out of pocket, unless you have a separate flood policy.
Fast fact: Visit FEMA flood maps and think of a different flood insurance policy.
Earthquake Damage
However, unless you happen to be in California or any other area that is prone to earthquakes, likelihood is that your policy does not cover earthquakes. Earthquake destruction can be disastrous- imagine broken foundations and walls. If there is no special rider, there could be a half-price bill of six figures in sight.
Hint: Small tremors may undermine structures in the long run, and it is always better to be on the safe side.
Sewer Backup
This is one that creeps on the house holders. The sewer line that has been backed up can lead to the unpleasant water damages, destroying floors, carpets and other personal items. The majority of standard policies do not cover this- unless you have added a special endorsement of sewer or drain backups.
Quick tip: Clean and take care of your pipes regularly to avoid a disaster, and still, maintenance should not be used alone.
Mold Damage
Mold is the secret enemy of houses, and it enters the house after leaks or water damages. Majority of the insurers will not cover mold removal unless it was the direct cause of a covered peril such as a broken pipe. Unluckily, that leaves much room in which mould is completely out of pocket.
Quick tip: Fix the leakage as soon as possible and keep track of the humidity to prevent a mushroom of molds.
Identity Theft
Wait, is that not a different type of insurance? You are correct, but here is the rub; there are home policies that cover identity theft, and there are those that do not. In case a burglar robs your personal information when he breaks into your home, or, because hackers have violated your network, you may end up paying legal and restoration fees.
Fast fact: Be sure to inquire of your insurer concerning identity theft endorsements, or want to get separate coverage.
Luxury Jewelry, Art or Collectibles
Typical home insurance policies impose a limit on the value of jewellery, art and other items of collectible value. That old guitar or heiress necklace? You may but reap a small part of its value.
Pointer: Pay these items individually on your policy so that you are fully covered.
Home Office Equipment
Due to the increased use of remote work, we are increasingly spending on expensive computers, printers, and office equipment. A lot of the standard home insurance policies will not cover business equipments at all or even a small percentage.
Trick: Ask your insurer whether you have a home business rider to cover your working equipment.
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Damage from Pests
We are talking of termites, rodents and even sneaking raccoons in the attic. A majority of home insurance coverage does not cover damages done by pests, and this can accumulate very quickly when infestations are not addressed.
Hint: Preventive pest control and routine inspections are not only a smart thing to do but may cost you thousands in savings.
Temporary Living Expenses or Loss of Use
In the case of fire, flood and other calamities that make your home unlivable, the policy may not accommodate your living costs in the process of repairing your home. This is in some plans, but not many, and you end up paying hotels, meals and other expenses out of pocket.
Pro tip: Make sure you save your policy on loss of use to ensure that you are covered.
Accidental Home Damage
Easy accidents occur- pets scratch and windows are smashed by kids or a ladder through the roof. Basic home insurance does not necessarily cover minor accidents, as it usually covers big disasters.
Quick tip: You may want to consider the accidental damage coverage in case you want to have complete coverage of the small accidents in life.
FAQs
Q: What does my home insurance not cover?
A: Read your policy carefully! Search exclusions and restrictions. It is always a good idea to call your insurance agent to ask them questions- they may assist in finding loopholes in their coverage.
Q: Does it make sense to purchase all these additional coverages?
A: It is dependent on your way of life, place of residence and precious items. Cover of flood/earthquake is essential in the risky regions, where jewelry riders/ home office endorsement can be better suited to your own case.
Q: Is it possible to add missed coverages?
A: Absolutely! A majority of insurers permit endorsements or riders to obtain gaps following your first policy.
Wrapping It Up
I can easily say that you may think when you are home insured, you are completely covered. The fact is that 10 things your home insurance may not cover but should is not unique as most homeowners know. Floods, earthquakes, mold and identity theft are just a few of the gaps that will leave you susceptible to finance should you not be cautious.
Spend a few minutes today to revisit your policy and find areas where coverage is lacking and discuss with your insurer other possible areas of coverage. Due to the fact that any time disaster hits, being underinsured is not the time you get to discover that your policy has loopholes. Better safe than sorry!
Keep in mind that one of your largest investments is your home, and you should not be caught without a plan after any unexpected emergencies occur in your insurance coverage. Secure your castle, your treasurers and your tranquility by taking care of these 10 areas today.
