Homeowner's insurance policies are not necessarily all-inclusive. They can exclude coverage for specific situations, and you may have to buy separate policies to cover those exclusions.
Here are a few common homeowner's insurance exclusions that you should know about.
Flood Damage
A homeowner's policy doesn't cover damages from floods. That's why you should purchase a separate flood insurance coverage to protect your property further.
If you live in an area that's prone to floods and your community participates in the National Flood Insurance Program (NFIP), you can get affordable flood coverage through the federal provision. Alternatively, you can also purchase flood insurance as a standalone policy from private insurers.
Be sure to ask your insurance agent about the flood risk in your area. They can help you understand what other options cover flood damage.
Power Outages
A homeowners insurance policy will not cover damage caused by a power failure. That's because the policy covers sudden, accidental events and not things that happen slowly over time.
Power outages are typically slow to occur and can often be predicted before they happen with advanced weather reports. For example, if you live in an area where tornados frequently occur during the summer, you should consider additional coverage. You can get a policy that covers losses resulting from a power outage from severe weather conditions.
You can also purchase this cover as an add-on to your homeowner's insurance policy. Make sure you ask your insurance agent about this coverage option if you're concerned about potential power outages.
Neglect
If you fail to maintain your property, homeowner's insurance will not cover any damages that result from poor maintenance. For example, you have to inspect and maintain your gutters and downspouts. Failure to do so could lead to damage in different parts of your home, including the sidings.
In addition, you need to replace old electrical appliances that may pose a danger to your home. Otherwise, your homeowner's insurance package may not cover damages if these appliances catch on fire.
Make sure to consult with your homeowner's insurance agent if you have questions about your specific policy to avoid surprises down the road. Ignoring the exclusions will not hold up in court if something does happen and you try to file a claim.
Government Action
Government interventions such as evictions and foreclosures are not covered in a homeowners insurance policy. This cover doesn't protect you from financial loss due to government actions.
In most cases, you might not get covered if your home is damaged due to civil unrest from riots or terrorist attacks. However, some policies may offer coverage for such events, so be sure to check with your insurance company first.
To learn more, contact a company like Kyle Insurance Group LLC.
Share1 March 2022
Like many new homeowners, when my husband and I purchased our first home, we were on a tight budget. We knew we needed a good home insurance policy, but we had a difficult time finding one that provided the coverage we needed in our flood prone area of the country at a price we could afford. We spoke to many insurance agents and finally found one that covered everything we needed at a reasonable price. We learned a lot about home insurance along the way, and we are eager to share what we have learned with other new homeowners who need the advice! We plan to post new home insurance tips and news often, so come back soon!