If you’ve recently had an offer accepted on a home, you may be starting to think about homeowner’s insurance and the things it does and does not cover. Normally, homeowners’ insurance will protect you from a variety of potential damages. However, it is important to understand what your homeowners’ insurance policy does and does not cover. In this blog article, we’ll examine what is covered by home insurance, things it doesn’t cover, and what is a homeowner’s insurance deductible.
What Is Covered by Home Insurance?
First, let’s examine what is covered by home insurance. Homeowners’ insurance will pay for the repair or rebuild of your home in case of an unexpected event like a fire or other natural disaster. Homeowners’ insurance will also typically cover the contents inside the home in case of an unexpected event or a burglary. Finally, homeowners’ insurance will cover the cost of legal fees and damage awards in case someone is injured on your property and decides to sue.
Things Homeowners Insurance Doesn’t Cover
Now that you have a better idea of what is covered by home insurance, it’s important to understand things that homeowner’s insurance doesn’t cover. Below we’ll list some of the most common events or issues that will likely not be covered by your homeowner’s insurance policy.
- Flooding – One of the most common things homeowner’s insurance doesn’t cover, that many homeowners don’t realize, is flooding. While leaks and water damage that originate inside the home are normally covered, damage from rain, floods, and storm surges isn’t. Your mortgage lender may require you to purchase this as well as homeowners’ insurance depending on where you live.
- Mold – You could possibly be protected from mold damage if the mold is the result of flooding due to a burst pipe. However, if your insurance policy provider finds you negligent or potentially responsible, they may deny your claim.
- Earthquake and Water Damage – Separate sinkhole, landslide, and “earth movement” insurance is worth investing in if you live in an area that is prone to this activity. Homeowners’ insurance will cover some pipe or plumbing damage but not all. If the burst pipes are the result of your lack of upkeep on your home, you may not be covered. Gradual damage that could’ve been prevented by the policy owner will not usually be covered.
- Home Business – If you work out of your home you may need separate business insurance. Especially if you keep inventory or heavy equipment at your home.
What Is a Homeowners’ Insurance Deductible?
If you’ve ever had car or health insurance before, you may be familiar with the term “deductible”. The homeowners’ insurance deductible is the amount of money you will pay out of pocket before your insurance policy kicks in. You typically choose the deductible amount you want to pay when building out your policy, but you will only pay a deductible if you file a claim.
If you’re still unsure about your homeowners’ insurance policy or are interested in getting a new insurance policy, it’s best to speak to an insurance services provider. Dunham Insurance Services is an independent agency offering the best insurance policies throughout Florida and the rest of the country. Our agency’s driving mission is to reduce your overall insurance costs by providing the very best business, home, auto/marine, commercial, and personal umbrella policies. Get in touch today to discuss your home insurance needs!