Homeowner’s insurance policies are often a bit tricky to read and understand. There are some pretty bizarre things that are covered under a homeowner’s insurance policy, while other events that you might assume are covered are not. This is why it is crucial that you read and understand your homeowner’s insurance policy.
In other words, instead of stuffing your policy into a file cabinet and forgetting about it, take the time to review it annually so that you can decide if it is best suiting your needs. If your homeowner’s insurance policy falls short, consider switching to a more comprehensive policy or taking out specific riders that better protect yourself, your family, your home and your assets.
There are a few things that are generally always covered under a standard homeowner’s insurance policy, including:
- Fire and smoke damage
- Lightening strikes
- Tornadoes and wind damage
- Hail
- Vandalism and theft
- Falling objects
However, you may be surprised to find that there are a number of things that aren’t covered under a standard homeowner’s insurance policy, including:
- Floods - You must purchase extra flood insurance, which is typically available through the federal government.
- Earthquakes - Again, in order to be covered for earthquake damage you must have a separate earthquake policy, which is purchased from the federal government.
- War and nuclear accidents
- Home businesses
- Any wear and tear on the home, including a home’s deterioration
- Rodent and insect infestation
- Unintentional damage
- Theft from a home under construction
- Vandalism to a vacant home
- Any property belonging to tenants
- Any damage caused by a domestic pet
Homeowner’s insurance policies become tricky when there are other circumstances involved. For example, if you go on an extended vacation and return to find that your home was vandalized or robbed, you are not covered, as most insurance policies consider a home vacant if you have not lived in it for 30 days.
If you have a small creek behind your house that swells and floods your home during a bad storm, your homeowner’s insurance policy will likely not cover the damages that results.
If you have personal property stolen from your vehicle, you are likely covered under your homeowner’s insurance policy, yet if a thief steals your home business computer equipment, you are not covered.
Sound a bit confusing? It is!
These examples are just some of the reasons why it pays to purchase a comprehensive homeowner’s insurance policy and to make it a point to read and understand every section of the policy.
