Homeowners insurance can protect you from financial ruin, but only under certain circumstances. Your policy might not cover everything that you think it does, and it might provide protection when you don’t expect it.
Natural Disasters
One common misconception is that homeowners insurance covers all claims related to severe weather and natural disasters. If a roof or siding get damaged in a storm, homeowners insurance will typically pay for repairs.
Flooding, however, is excluded from a standard homeowners insurance policy. If a nearby body of water overflows its banks and damages your property, you won’t be covered unless you have a separate flood insurance policy. Your standard homeowners policy also most likely won’t cover damage caused by an earthquake, a landslide, or a Sinkhole.
Mold
Homeowners insurance covers mold in certain circumstances, but not others. It all depends on how the mold was caused. Homeowners insurance covers damage related to sudden and unforeseen events, not problems caused by wear and tear or neglect. If a pipe bursts and your house gets filled with water, your homeowners insurance policy will pay to remove mold caused by that event.
If you don’t take care of your roof, water seeps under the shingles when it rains, and mold gradually grows in your attic, the insurer can deny your claim because the mold was caused by neglected maintenance.
Liability for Injuries
Another common misconception is that homeowners insurance will always cover medical bills if someone gets injured on your property. The liability portion of your policy will pay for injuries to someone who visits your home. If a member of your family gets hurt, your homeowners insurance coverage won’t apply.
The liability coverage in your policy won’t automatically cover injuries to a non-family member who visits your house. Your insurer won’t pay a claim if you or a member of your family commits an intentional or criminal act and someone gets hurt.
Theft and Vandalism
Your homeowners insurance policy will pay to replace personal belongings that get stolen or vandalized. That coverage doesn’t just apply if an event occurs at your house. You can also get compensated if your belongings are stolen or vandalized while you’re away from home. For example, if someone breaks into your car and steals your laptop or walks off with your phone while you’re traveling, your homeowners insurance policy will cover your loss. The insurer will put a cap on your level of coverage for off-premises theft or vandalism.
Review Your Policy
You might think you know what your homeowners insurance policy covers, but if you’re like most homeowners, you probably have some misconceptions. Go over your policy so you know exactly what it covers and identify any gaps in your coverage. If you have questions or need advice about selecting the right coverage, contact your insurance company or agent.
