You wouldn't ordinarily think so but home insurance can be tricky. That's why it's important to read over your policy carefully to make sure it covers everything you home may be susceptible to.
For example, most home protection policies will cover losses from such disasters as fire and smoke, riots and vandalism, wind and hail, lightening, volcanoes, and even airplanes that crash into your home. What they don't typically cover are termite damage, flooding, power outages, acts of war, nuclear events, government seizures or sinkholes.
Now if you're in an area that is susceptible to flooding or sinkholes, you may be able to get coverage for these if you pay more for them. Earthquake-related damage can be added if you live near a fault line. You can also pay for flood insurance. There is even liability insurance to cover your dog biting a deliveryman or a neighbor.
Areas outside your home are often covered but have limits. For example, your lawn may be protected but only up to $500. What if your house has mold? Unfortunately, mold-related losses are increasingly not covered in policies.
If you have a home business, such as a dentist or doctor's office, a hair salon, a carpentry shop, day care, or therapist office, you will probably need a separate policy.
Then there are those situations that could fall outside the covered category due to negligence. For example, let's say a pipe bursts and it causes water damage. That's usually covered. But if you had been away and forgot to leave the heat on, which caused the pipe to freeze that could be considered negligence and the insurer might deny your claim. Or if you suffered damage from a leaking pipe or valve that should have been repaired years ago, your insurer might dispute a claim.
Home maintenance costs are generally not covered by insurance. So if you need a new roof, and water leaks in causing damage. The water damage is covered, but you'll still have to pay for a new roof.
Sometimes a fire can fall under negligence. Let's say you are supposed to pay $75 a year for firefighter protection in your community and you fail to pay it. If your home burns down, your insurer can claim that you were negligent by not protecting your home by paying the firefighter fee.
One typical area to be aware of is the value of your home. Sometimes people will buy home insurance when they first purchase their home and then never increase it even though the value of their home may have risen considerably. It's important to check your policy to make sure your coverage keeps up with your home's value.
It's your responsibility to have the coverage you need. So take some time and read over your homeowners policy if you haven't done so lately. Know what you're covered for and what you aren't and then make any adjustments necessary. A few dollars spent now could save you a bundle later.
