Home insurance isn’t a product of luxury. Though it’s usually a costly thing, in some cases it is required. Home insurance is good for your protection. Dangerous neighborhoods, suspicious personalities, frequent and long-lasting business trips can initiate your desire to insure your house. Home is a treasure for most of us and it should be protected.
Unfortunately, most of the insurance companies prioritize the profit over your safety. That’s why they hide some aspects of insurance, namely cases that go beyond coverage. While people may think they are protected, in the reality, they are helpless. Often in case of emergency homeowners have to rely on quick easy online loans because their insurance doesn’t cover many unexpected costs. This is the reason knowing the most common exclusions in a home insurance policy is so vital. Learn how to protect yourself as early as possible.
Natural disasters and uncontrolled situations are the most common cases that a simple coverage package doesn’t include. People can find out that their insurance doesn’t cover earthquakes, floods, hurricanes, landslides only after these disasters happen.
What should you do? You should ask your insurance agent if your package contains these cases. In most of the cases, insurance doesn’t cover natural calamity. That’s why most of the house owners purchase additional packages.
If you live in the at-risk area where floods and other water damages often occur, you should look for the specialized coverage programs. Federal Emergency Management Agency (FEMA) offers National Flood Insurance Program (NFIP). The agency launched a program in 1968 and keeps on helping people from high-risk areas to protect their budget from losses. High-risk areas are the regions that have 1% or greater probability of flooding in any year. It’s equivalent to a 26% chance of flooding during a 30-year mortgage.
Speaking of the earthquakes, most of the insurance companies offer earthquake coverage as an additional endorsement to an existing policy.
So, insurance packages don’t usually include all kinds of the water and earth damages.
Losses and home damages, which a war caused, are also usually excluded from insurance. State Farm Insurance Co. is the company that insured more houses in the country than any other insurance company in the USA. Still, even this company doesn’t cover damages from war or acts of terrorism. Still, a spokesman for the company confirmed that they might pay a claim in some cases.
You can’t know for sure whether your coverage includes war and terrorism cases. So, it’s important to ask your insurance provider about it beforehand.
Congress of the USA though, in the last year announced that government will pay insurance for damages caused by foreign terrorist acts if they are more than $5 million. If they are less, coverage isn’t established by law.
Unfortunately, any kind of the governmental public actions isn’t covered by insurance. There are cases when a homeowner gets under the violation of a municipal ordinance. It means that special services must take measures (perform construction work) to fix the property so it complies with rules set by City Council. The coverage company won’t compensate the costs for construction work. Unfortunately, agents don’t usually emphasize the fact that packages don’t include coverage for ordinance compliance expenses and compensation for flawed construction. Again, it’s important to make everything clear at the beginning and ask for the additional statements.
Other Home Insurance Exclusions:
- Nuclear accidents
- Freezing of plumbing, heating, air condition, or automatic fire-protective sprinkler system
- Falling objects
- Wet rot
Furthermore, make sure that your insurance policy covers cases of neglecting. These cases are the situations when the measures that could prevent damages could be provided but weren’t provided. Insurance companies usually win on these cases as people don’t pay attention to such tricky things.
To protect yourself be sure to study the contract thoroughly and consider all coverage aspects beforehand. It’s so easy to fall into a trap. So, stay cautious and benefit!