A standard homeowners policy is designed to cover damage caused to your home and its belongings due to a covered peril, such as theft, storm, fire, etc. Although this policy will provide much of the coverage you need, it is far from complete, especially when you live in a high-risk zone.
Earthquake, Hurricane, and Flood Coverage
Earthquakes, hurricanes, and floods are specific types of perils that only occur in certain areas. Because of the limited areas where they may strike, most standard homeowners policies don’t cover them. Instead, you need to apply for endorsements or an addendum that will include coverage for these specific natural events. Flood insurance is actually a policy on its own and must be purchased through the National Flood Insurance Program.
Water damage is also a tricky situation. A standard home insurance policy excludes sewer backups and damage that results from a faulty sump pump. Damage to your sewer drains is another circumstance that won’t be covered. Damage from a frozen pipe may be covered, but only if it is proven that your pipes were well maintained and that the damage was unexpected. You can, however, ask about an additional endorsement to cover those types of damage. Your insurance agent can help you figure out what types of coverage you may need.
It’s up to you to keep your home well-maintained. If your plumbing, wiring, or any other appliance or system in your home should fail due to everyday wear and tear, your standard homeowners’ policy will not cover the resulting damages. However, if you perform regular inspections and are diligent in making repairs when they are needed, certain perils may be covered.
When you begin to read through your standard homeowners’ policy, you may be surprised at some of the exclusions you come across. Damages that are caused by war or any type of nuclear hazard are common exclusions. Some expenses that are related to having your identity stolen are also excluded. Your homeowners may offer some coverage to your boat if it gets stolen from your home. The coverage ends, however, when the boat leaves your property.
Not Enough Coverage
One of the biggest problems many homeowners face is that they don’t have enough coverage. This can mean not having enough coverage to replace your home or insufficient coverage for more expensive items like your antiques and collectibles. Getting your items appraised will let you know their true value. Moreover, medical costs are increasing every year. Therefore, it’s up to you to make sure you have sufficient liability coverage to pay for medical bills and lawsuits if someone gets injured on your property.
To ensure you have all of the right types of coverage, you will need to look carefully at your homeowners’ policy and see what perils are covered. Contact us today at Udell Family Insurance for assistance regarding your homeowners insurance. We will go through your policy and identify areas that may need additional coverage. Schedule an appointment and have your coverage evaluated as soon as possible to ensure you have all the coverage you need to protect your home and family.