Flooding is not generally covered by a standard home insurance policy. The Alberta floods made the majority of residents there aware of this. Many people are not familiar with the other exceptions in their policies that they are not protected against. We will go over a few of the property exclusions that are part of standard homeowners insurance:
Structures used for business aren't covered by standard homeowners insurance. Keep in mind that all claims for business on your property will likely be denied by your insurance adjustor. Remember this if you're running any kind of business out of your home, if it's a day care, catering company, or a mail-order business for examples.
Pets are not generally covered, whether they are stolen or injured. If your pet causes an injury, this will be covered. If your dog bites someone, for example, and the injured person decides to sue, your personal liability insurance would cover you. Certain breeds of dogs are not included in standard coverage, so go over this with your insurance agent so you are not left holding the bill.
If there are losses on your property that would not have been incurred if you had taken measures to protect from further damage, these will be excluded. What does that mean specifically? Losses will not be covered if you have a fire in your home or on your property and you do not call the fire department. If your roof is damaged by a tree that falls and you neglect to protect your things from the rain that comes in after, coverage for those things will not be provided.
A power outage that causes losses is not covered, like if your food is ruined because of a lack of refrigeration during this time.
Damage due to rising waters, more commonly called floods are also not covered by standard policies. But you're also not covered for water backup. If your sewer or drain backs up or your basement's sump pump fails, this is not included. Unless you've purchased specific coverage for this, you could face thousands in damage.
If you lease space in your home or even just have a boarder who isn't related to you, his or her property is not covered by your homeowners insurance. The renter or boarder will need separate coverage in the event your home is affected by fire or another covered peril and their possessions are damaged.
Earthquakes are also not covered by standard insurance policies. For people living in a zone that has a high chance of earthquakes, special insurance for this needs to be purchased. And sinkholes and mudslides also typically aren't covered by home insurance.
Ask your agent about the exclusions in each policy you consider. Preparations can be more easily made if you know what you are covered for, and what you are not.
Structures used for business aren't covered by standard homeowners insurance. Keep in mind that all claims for business on your property will likely be denied by your insurance adjustor. Remember this if you're running any kind of business out of your home, if it's a day care, catering company, or a mail-order business for examples.
Pets are not generally covered, whether they are stolen or injured. If your pet causes an injury, this will be covered. If your dog bites someone, for example, and the injured person decides to sue, your personal liability insurance would cover you. Certain breeds of dogs are not included in standard coverage, so go over this with your insurance agent so you are not left holding the bill.
If there are losses on your property that would not have been incurred if you had taken measures to protect from further damage, these will be excluded. What does that mean specifically? Losses will not be covered if you have a fire in your home or on your property and you do not call the fire department. If your roof is damaged by a tree that falls and you neglect to protect your things from the rain that comes in after, coverage for those things will not be provided.
A power outage that causes losses is not covered, like if your food is ruined because of a lack of refrigeration during this time.
Damage due to rising waters, more commonly called floods are also not covered by standard policies. But you're also not covered for water backup. If your sewer or drain backs up or your basement's sump pump fails, this is not included. Unless you've purchased specific coverage for this, you could face thousands in damage.
If you lease space in your home or even just have a boarder who isn't related to you, his or her property is not covered by your homeowners insurance. The renter or boarder will need separate coverage in the event your home is affected by fire or another covered peril and their possessions are damaged.
Earthquakes are also not covered by standard insurance policies. For people living in a zone that has a high chance of earthquakes, special insurance for this needs to be purchased. And sinkholes and mudslides also typically aren't covered by home insurance.
Ask your agent about the exclusions in each policy you consider. Preparations can be more easily made if you know what you are covered for, and what you are not.
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