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For many home insurance policies, certain things are not covered, and a homeowner would be wise to educate themselves about this.
Damage from Flooding
Flood damage is not included in your home insurance coverage, but certain kinds of water damage is covered. There are usually a lot of questions that a homeowner may ask about water damage, so have a look at your policy to fully understand what is covered. However, damage from a flood is excluded from home insurance policies. The most commonly accepted definition of a flood is a natural body of water that overflows. Run off and seepage below the surface of the ground is also excluded.
When Maintenance is Neglected
Insurance companies normally cover damages that result from unforeseen circumstances. The whole reason to have home insurance coverage is that if an unavoidable accident was to happen and your home, or your property is damaged, that you can have it restored to it's original condition. Wear and tear and regular maintenance issues do not fall under that category. When a home starts to have damage from wear and tear over time, the homeowner has the responsibility to provide the necessary upkeep and make the repairs needed.
Mold Damages
Water damage can result in mold formation, and even if it happened without your knowledge, home insurance policies do not cover cleaning up the damages from mold. Water damage can cause mold and then the mold is very costly to eliminate, so leaks should be a top priority for a homeowner. When a covered peril is the cause of water damage on your property, be sure that you inform your insurance agent as soon as possible.
Earthquakes
For homeowners that live in a high-risk earthquake zone, they will need to pay extra to have earthquake coverage, in addition to their regular home insurance. Be aware these policies can have high premiums, very high deductibles and low limits.
Damage on business property
Homeowners insurance will not always cover damage that may be associated with personal business property. Your homeowners policy will likely need to be supplemented or you may need a separate business policy. Some homeowners policies do cover business property but at significantly lower limits than personal property. Business data won't be covered, though.
Damage due to Construction Work
Renovating your home can be a lot of fun. If you choose to do this, make sure you realize that damage that you cause to the home from construction is not covered by your home insurance. So if you're planning to remodel your home, you should look into what's called a builder's risk policy. Protection from this kind of coverage will include construction damages, as well as rain or wind storm damage, and theft is an issue during construction as well.
You should also notify your insurance agent of what type of work you are having done.
A lot of homeowners don't realize that certain kinds of damage are not typically covered by their home insurance policies. Don't assume everything under your roof is covered. Look into it, so you know what is included and excluded.
Damage from Flooding
Flood damage is not included in your home insurance coverage, but certain kinds of water damage is covered. There are usually a lot of questions that a homeowner may ask about water damage, so have a look at your policy to fully understand what is covered. However, damage from a flood is excluded from home insurance policies. The most commonly accepted definition of a flood is a natural body of water that overflows. Run off and seepage below the surface of the ground is also excluded.
When Maintenance is Neglected
Insurance companies normally cover damages that result from unforeseen circumstances. The whole reason to have home insurance coverage is that if an unavoidable accident was to happen and your home, or your property is damaged, that you can have it restored to it's original condition. Wear and tear and regular maintenance issues do not fall under that category. When a home starts to have damage from wear and tear over time, the homeowner has the responsibility to provide the necessary upkeep and make the repairs needed.
Mold Damages
Water damage can result in mold formation, and even if it happened without your knowledge, home insurance policies do not cover cleaning up the damages from mold. Water damage can cause mold and then the mold is very costly to eliminate, so leaks should be a top priority for a homeowner. When a covered peril is the cause of water damage on your property, be sure that you inform your insurance agent as soon as possible.
Earthquakes
For homeowners that live in a high-risk earthquake zone, they will need to pay extra to have earthquake coverage, in addition to their regular home insurance. Be aware these policies can have high premiums, very high deductibles and low limits.
Damage on business property
Homeowners insurance will not always cover damage that may be associated with personal business property. Your homeowners policy will likely need to be supplemented or you may need a separate business policy. Some homeowners policies do cover business property but at significantly lower limits than personal property. Business data won't be covered, though.
Damage due to Construction Work
Renovating your home can be a lot of fun. If you choose to do this, make sure you realize that damage that you cause to the home from construction is not covered by your home insurance. So if you're planning to remodel your home, you should look into what's called a builder's risk policy. Protection from this kind of coverage will include construction damages, as well as rain or wind storm damage, and theft is an issue during construction as well.
You should also notify your insurance agent of what type of work you are having done.
A lot of homeowners don't realize that certain kinds of damage are not typically covered by their home insurance policies. Don't assume everything under your roof is covered. Look into it, so you know what is included and excluded.
About the Author:
Looking to learn more, visit insure your Alberta house, or if you're insuring your condo visit www.squareoneinsurance.ca.
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