Whether you are in the market for a home insurance policy or you have an existing policy, there are several factors to consider when determining what home owners insurance doesn't cover. You may be surprised by the different types of damages your policy doesn't cover.
Floods
Buying flood insurance can be an important part of your home's insurance coverage. You can buy it through the National Flood Insurance Program (NFIP) or from a private insurance company.
A standard homeowners' insurance policy is not designed to cover flooding. It typically doesn't cover flooding due to hurricanes, heavy rain, sneak waves or flood damage from overflowing rivers. If your home is located in a flood zone, you may be required to carry flood insurance by your lender.
Most standard home insurance policies cover water damage that happens inside your home, but they don't cover flooding. In many cases, homeowners don't realize that they're not covered for flooding. However, you can add flood insurance to your policy to protect your home's structure and personal possessions.
The National Flood Insurance Program (NFIP) is a federal program that allows homeowners in flood-prone areas to buy flood insurance from private insurance companies. While most homeowners are required to carry flood insurance, some homeowners are not required to.
Renters also need to purchase flood insurance. The same deductible applies to renters' policies as it does to homeowners' policies. However, renters will also cover damage that results from hurricanes.
If you're unsure of whether your policy will cover your flood-related damages, review the declarations page of your policy. You may also find endorsements for sewer backups. You'll need to contact your agent to verify these endorsements.
Earthquakes
Unlike other types of insurance, earthquakes are not usually covered by standard homeowners or renters policies. However, it is possible to purchase an additional endorsement for your existing policy that will pay for earthquake-related damage.
Depending on your insurance company, the premium for earthquake insurance may be a bit steep. It depends on a variety of factors, including the type of construction of your home, the deductible, and the geographic area you live in.
Earthquakes are very serious events, and they can damage your home or cause fires. Although your standard homeowners or renters policy may cover fire damage, it will not cover earthquakes. This is why you should consider purchasing earthquake insurance.
Although the insurance policy will not cover damages from earthquakes, it may cover debris removal and emergency repairs, which could help you recover from the event. In some cases, it may even cover the cost of stabilizing the land under your home.
It may also cover damage to your home, and your personal property. The policy may also include loss of use coverage, which pays for hotel stays while your home is being repaired.
In addition, an earthquake policy may offer a discount for a home that is earthquake-proof. If you have an older home, you may qualify for a 20 percent discount if it is retrofitted to be earthquake-resistant.
Termites
Termites are silent destroyers. They can cause thousands of dollars worth of property damage. They can also cause house fires and electrical wiring problems. They can even collapse a building.
Most home owners insurance policies don't cover termite damage. However, there are some circumstances where you might be able to get coverage.
Some insurers offer discounts for multiple policies. You may be able to find a policy with a lower premium if you take a larger deductible. You will also need to have liquid savings to cover your deductible.
If you do find that your insurer will cover the cost of termite damage, you will need to have a licensed contractor repair the wood. They may also need to treat the ground.
You should also take measures to prevent infestations. This means cleaning up the yard and removing wood debris from around the foundation. You also need to seal any gaps in the foundation. Also, keep your gutters clear of leaves and debris.
One of the most important things you can do to prevent termites is to get regular termite inspections. This will allow you to spot infestations early and act accordingly. It is also a good idea to get a quote from a pest control company. They may be able to prevent a large infestation from spreading.
Bedbugs
Whether you're renting or own your own home, you're probably not aware of the fact that homeowners insurance doesn't cover bed bugs. In fact, most policies group insect infestations into an exclusion. Fortunately, you can still protect your property.
If you have a renter's insurance policy, you might have coverage for accidental damage to your rental property. You'll be reimbursed for hotel bills and other costs if you have to leave your home. In addition, some policies will cover hidden insect damage.
Standard homeowners insurance policies cover natural disasters and theft, but they don't cover bed bugs. While your home may be in good repair, bed bugs can easily find their way inside.
In order to prevent an infestation, you'll need to take preventative steps. These include washing your linens in hot water and drying them at the hottest dryer setting. Also, be sure to keep your home's plumbing and HVAC clean.
The best way to keep bed bugs at bay is to prevent them from getting in in the first place. One good way is to purchase a bed bug encasement for your box springs and pillowcases. These prevent the bugs from settling into the seams and settling into your bed.
Mice
Having a mouse in your house is a nightmare, and fortunately for you, mice are not covered by home owners insurance. Luckily, you can get rid of them by hiring a pest control specialist. These animals are not only a pain to deal with, they can also damage your property, and if you're lucky, they may even get in the kitchen.
If you have a mouse in your house, you're likely also dealing with a rat. These little rodents like to make their home in warm areas, such as your basement, and can chew through wires and even your foundation. In fact, these critters can be quite the pests, and may cost you thousands of dollars in repairs.
Mouse related items like a mouse mat, mice shaped toilet seat covers, and mice shaped toilet paper rolls can all be found on the market. These little guys may be the smartest animals on Earth, but they can also be a pain to deal with. The best way to deal with these pests is to get a pest control specialist to inspect and eliminate them before they start chewing on your property.
Most home owners insurance policies are designed to cover the basics, so if your home is a mouse's castle, you'll have to make some sacrifices.
Other vermin
Despite the fact that vermin are a real pain in the arse, many homeowners are still unaware that their home insurance may not cover them. This can be a real bummer, especially if you have a mortgage to pay off. A good insurance company should be able to provide you with some form of vermin coverage. In addition, insurance companies are likely to pay for the cost of repairs if they can prove that you were unaware of the presence of the critters.
In fact, it's best to take the time to review your insurance policy on an annual basis to make sure you're still covered in the event of a disaster. A qualified insurance agent can also assist you with your mortgage application to make sure you are not paying over the odds on your home loan. For a nominal fee, the insurance company may be able to provide you with some form vermin coverage, as well as a check for the cost of repairs if you were unaware of the presence of the rabid critters. Most insurance companies will provide a list of approved vendors to which you can submit your claim. If you're lucky, you may even have the opportunity to take advantage of a no obligation free inspection of your home.
Intentional or illegal acts by the homeowner
Generally, home owners insurance does not cover intentional or illegal acts by the homeowner. But this is not a hard rule. It depends on the policy. The policy may exclude such conduct, and there may be some states that do not include such conduct. There are three basic questions to ask yourself when considering whether an act of intentional conduct is covered under your policy.
A common example is setting a fire in the home, or vandalism. The fire will likely void the home owners insurance policy, and smaller acts of vandalism may not be covered. However, there are some exceptions. For example, intentional conduct claims against your employer may be considered. If your employer is responsible for a fire or other accident, you may be able to file a claim against the employer for intentional acts. You may also be able to file a claim against your insurance agent for fraud.