5 Things NOT Covered on Your Home Owners Policy

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Housing Crisis

5 Things NOT Covered on Your Home Owners Policy

Insurance policies are specific contracts you enter into with your insurance company to reimburse you should certain losses occur. Many people make the wrong assumption that ANYTHING or EVERYTHING bad that happens is covered…

Not true.

Although this is not a complete listing of what is not covered, here are five ‘perils’ that are NOT covered unless you specifically add them and pay a premium.

  1. Flood – Flood is usually defined and any surface water or underground water that forces its way into the dwelling.
  2. Earthquake – The deductibles for this coverage are ridiculously high. They typically run any where from 10% to 25% of the Dwelling Amount. So if you have a $150,000 home with a 15% Earthquake Deductible, YOU will have to repair the first $22,500 of damages before your insurance company begins to reimburse.
  3. Sewer and/or Drain Backup – This is automatically excluded under home policies unless you add the coverage back in. It’s always a good idea to add at least $10,000 in coverage (minimum) to your policy because pumping out water or sewage can be very expensive.
  4. Normal Wear and Tear – This just is not covered. Home Maintenance is not covered and is the responsibility of the home owner. So when the roof needs replacing, you’ll have to hire the work done.
  5. Cars Parked on Your Property – Cars, Trucks, and other vehicles are excluded on home policies. That’s what Auto Insurance is designed to cover.

This is why is essential to develop a good relationship with a competent and professional insurance advisor. For a list of agents, visit HERE.