Are you aware of what your basic home insurance covers when there is a catastrophe or an accident? The unexpected can happen anytime, so, there is a need to find out about it if you don’t know.
If you are a property owner, you should already have the basic home insurance policy – this is a requirement for securing a mortgage. Besides, you know your insurance coverage covers your home and its contents. This is so to have adequate cover when there is theft or fire but you may not know that there are several other things not captured in the homeowner’s insurance policy.
Therefore, there are many things most basic home insurance policy does not cover – usually, you find out when the time comes to pay bills after experiencing a major catastrophe. The last thing you want to discover is that your home insurance company will not be paying for the damages.
However, as a policyholder, you should ask many questions and to go through the fine print captured on the contract or terms of the agreement.
The following are the 12 things that your basic home insurance might not cover;
1. Water Damage And Earthquake
The standard policy does not cover sinkholes, earthquakes, and other earth movements. However, the earthquake insurance cover can be purchased in addition to your policy. Also, note that it comes with additional charges everywhere except in California.
Also, a policy that covers flooding which includes mudflow must be gotten as a different policy and available at the National Flood Insurance Program which is under the auspices of the government.
A basic home insurance cover generally limits the damage caused by mold or takes it off. Besides, some firms allow expanding coverage limits for mold claims – if only you are willing to make additional payments for your insurance coverage.
So, the best way to tackle mold is by preventing it from growing in the first place. You need to get rid of leakages, or any form of moisture as soon as possible.
3. Burst Pipes
There are occasions when burst pipes are not covered, though some might be covered at times. for instance, if it’s your negligence to leave the heat on when traveling in winter or you forgot to drain a pipe, then this might not be covered in your basic home insurance plan.
So, the necessary things should be done to prevent damage when going away. Besides, be in touch with your insurer to know what your policy covers.
4. Identity Theft
This is presently undergoing some modifications but some firms do not sell a policy that covers issues that arise from identity theft. However, some insurers offer an optional addendum to your policy.
So, talk to your insurer about this and make out time to go through your policy before considering buying an additional policy whenever needed.
Flooding is usually not part of the basic home insurance plan. So, if you reside in a flood-prone area, you may already have a plan that covers flooding. Therefore, people who live in flood-free areas do not have a plan that covers flooding. However, it is advisable to check with the National Flood Insurance Program to find out more about how this can be added to your insurance portfolio.
6. Nuclear Hazard
If your home becomes uninhabitable because of a nuclear hazard, you should not expect your home insurance company to offer any form of assistance. The policy does not offer reimbursement for any damage that results from nuclear reactions, radioactive contamination, or nuclear radiation.
7. Basic Home Insurance Plan And Accidents
Accidents are unexpected occurrences that happen, and this is why insurance plans have liability coverage. However, accidents due to high-risk materials on your property like trampoline or swimming pool are excluded from your plan.
So, you will need additional coverage to get protection from accidents of such class. Also, if you have a certain breed of dogs that harms or bites someone, you will pay medical bills or lawsuits fees above a certain amount. Therefore, you will need a rider if you desire more coverage.
8. Construction Work Damage
If you are remodeling your living room for example and the contractor mistakenly puts a sledgehammer into the wrong wall, your basic home insurance policy will not cover the cost of patching-up the wall. This plan will not also cover other damages done by construction in your home.
An insurance firm does not want to be responsible for the actions taken by the government like declaring war. If another country declares war on the United States of America or the US decides to declare war on another country – damages or the destruction that happens to your home won’t be covered by your home insurance policy.
10. Fine Art And Jewelry
Several of the standard policies usually limit the level of coverage if something happens to things such as your jewelry or some expensive work of art. Therefore, the best way to get protection for these items is to get another insurance rider specifically stating what these items are.
11. Simultaneous Occurrence
Some policies do not make provision for simultaneous natural catastrophe. If you suffer severe flooding and then damage as a result of wind – you will not be able to file any claim. It is called “anti-concurrent causation” in the insurance world because flooding is excluded from the policy. This is when two disasters happen at the same time with one not captured in the policy.
12. Sewer Backups
This can be messy as it damages walls, furniture, floors, and the electrical system. However, it is not covered by the basic home insurance policy. Therefore, additional sewer coverage is required if you want protection from this.
Ensure you talk to your insurance provider and include these riders or you might want to buy separate insurance as it is needed. Also, read through your policy especially with your insurance company to help you explain some difficult areas – this means you won’t be caught unaware.