What type of coverage do you need?

Most homeowners insurance policies provide financial protection from big, common risks. Fires, theft and vandalism are a few of those. Liability lawsuits filed against a homeowner may get support, as well.

Yet, most policies also have exclusions. These are specific types of events the policy does not provide any coverage for in most cases. It is important to know what these exclusions are. Knowing exclusions might let you know how to augment your coverage for more thorough protection.

Common Exclusions

Check your current homeowners insurance policy for more information on these exclusions. A typical policy will contain these exclusions or non-covered incidents. Most policies list them explicitly.

Neglect: Home insurance only provides coverage for accidental and unavoidable incidents. It likely does not cover anything you did not properly maintain. For example, it will not cover damage related to roof leaks if it was due to poor roof maintenance.

Flooding: If a home floods from a weather event, insurance is unlikely to cover the damage. Some homeowners have specific flood insurance to minimize this risk. Policies typically exclude flooding from rising water. However, it might cover flooding from burst pipes, for example.

Vacant Property: Many insurance policies do not provide coverage for an empty home. This is usually a home in which no one lives for 30 days or more. The risks of damage such as vandalism or break-ins are often too high. If you have a vacant home, special home insurance may be available to help cover your property.

Mold: Mold damage from failure to maintain a property has no coverage under most plans. If the roof leaks and causes mold buildup, the mold cleanup and removal will not have coverage under most policies. You might, however, qualify for mold cleanup as part of a settlement for a covered claim.

War and Nuclear Events: These policies typically do not cover acts of war. This includes events such as a nuclear plant leak. The same applies to acts of terrorism that impact your property.

Pre-existing Damage: You bought a home. There’s damage to it. Your insurance is unlikely to provide coverage for this type of loss. It also does not provide coverage for manufacturer defects related to your home.

Small Business Losses: Many homeowners run a business out of their home. If so, you need small business insurance. A typical home insurance plan will not cover losses caused by a small business or losses to a small business.

Speak with your home insurance agent about these types of risks. Determine which is the most common area of concern for your needs. Then, find a policy to cover those specific areas of risk if necessary.

Posted 10:54 AM

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