TUESDAY, JULY 26, 2022
Most people purchase homeowners insurance because the mortgage lender requires it. While you may be aware of how homeowners insurance can benefit you, do you know what your policy excludes?
Standard Homeowners Insurance Does Not Cover Flood Damage
There is a general rule of thumb about coverage for water damage to your home. If the water causes damage before it hits the ground, it's normally covered. Water damage caused by flooding is not covered in a standard policy. An exception to this rule would be flooding caused by a pipe bursting in your home. If you live in a flood-prone area, your mortgage lender may require you to buy flood insurance. If not, it is relatively inexpensive and can be purchased through your agent. 
Damages Caused by Improper Maintenance are Not Covered
One of the most common misconceptions involves roof damage. If your roof is damaged by hail or a windstorm, it is normally covered. If your roof has just become ineffective due to wear and tear over the years, the damage is not covered. Normally, damage caused by improper maintenance of electrical systems or plumbing will not be covered. There may be exceptions here, so check with your agent.
Coverage for Certain Items of Personal Property May Be Limited
Some standard home policies provide limited coverage on certain items of personal property in your home. If you own very expensive collections of jewelry, electronics, guns, fine art or other collections, you will need to purchase additional coverage to adequately protect these items. Your insurance agent will advise you on whether it is best to purchase a policy endorsement or a separate policy.
Liability Coverage Protects Visitors, Not Members of Your Household
The liability coverage included in most standard home insurance policies is designed to offer limited protection in the event a visitor suffers accidental injury while on your property. It does not cover you or members of your household. There may be circumstances at your home that will make liability coverage unavailable to you. Many insurance companies will not cover accidents caused by trampolines or certain breeds of dogs.
While homeowners insurance doesn't cover everything, you can best protect your most valuable assets by taking the time to understand the types of coverage you have and working with your agent to make sure they stay up to date.
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