Damage to your home can be devastating. Even if you have insurance coverage, the process of recovering your valuables, filing a claim and possibly having to move can be traumatic. (Some close friends of mine had a house fire on Christmas Day of 2014. Fortunately, the damage was limited and no one was hurt).
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You can’t eliminate the risk of a house fire or weather-related damage, but you can make sure you understand your coverage. Bankrate explains 4 situations that are not typically covered under a standard homeowners insurance policy:
· Flooding: This situation may surprise you, since flooding is fairly common. Most people think that flooding is covered in a homeowners policy, but damage due to flooding is not normally covered. Fortunately, the federal government advertises flood insurance coverage options through the FloodSmart.gov site.
· Mold: The Center for Disease Control and Prevention points out that some people experience breathing problems due to mold. Your homeowners insurance policy will typically offer limited coverage for mold- or exclude coverage completely.
· Sewer Lines: Many cities are not properly maintaining sewer lines. Sewer lines are at risk of backing up, due to the aging infrastructure. The lines are designed to handle both storm water and raw sewage. A sewer line backup can damage your home’s structure (floors, walls, electrical systems). The backup can also damage furniture and other values in your home.
· Renters Insurance: A final point for people who rent property. You landlord’s homeowners insurance on your rented property does not cover anything inside the structure. To cover your personal property, ask an insurance agent about a renters insurance policy.
To ensure that you have coverage for these issues, you can add an endorsement to your homeowners policy. Your insurance premiums will be more expensive, but you’ll have coverage.
Your home is likely your biggest investment. Use these tips to have some peace of mind about your home or rented property.
Do you know someone who has had an issue with homeowners insurance? I'd love to hear from you.
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