Homeowners Will Need Additional Insurance For These Things
4 Things Your Homeowners Insurance Doesn’t Cover
A home is a basic need and an investment that definitely, needs protection. In case of unexpected events such as theft, fire, or vehicle damage, a home insurance policy will protect you. Additionally, homeowners insurance provides another layer of protection —what we would typically call liability protection— which guards you against legal action triggered by a property damage or bodily injury claim made by a guest.
Home insurance is meant to give you peace of mind; however, it doesn’t fix every potential problem your home might face. Here are some of the things your homeowner’s insurance doesn’t cover.
Poor Maintenance Problems
If your home presents problems caused by lack of maintenance, they will likely not be covered by your home insurance policy. Home maintenance tasks should be a priority, to keep your home in tip-top condition and to avoid problems that could end up costing you a fortune.
For your home to be protected against floods, you need additional coverage. Flood insurance is sold separately, and the National Flood Insurance Program usually manages them. You can buy up to $250,000 to cover the structure of your home and $100,000, for the things your home contains.
Landslide, Earthquakes, and Sinkholes
Any earth movement is usually not covered by home insurance policies; however, there are separate policies meant to protect your interest against those events. Your area will determine what kind of earth movement policy is best for you, depending on the action in that location.
Your home insurance policy does protect jewelry items, but it is unlikely to cover high-cost jewelry like a family heirloom or an engagement ring. The risk of jewelry being stolen is high, which puts a cap on how much money insurance carriers will cover. To protect these items, you can increase the liability limit on your current home insurance policy or resort to other alternatives, like getting an endorsement.
When you’re in the process of getting a home insurance policy, take time to sit with your agent, and discuss its limits. Be sure you understand how much coverage you have and which things are excluded from your policy. Bring up any questions you may have at that time. Your insurance agent is there to help you navigate through the process of protecting your interests.