Clients often come to me with questions about home insurance and how to best protect themselves in their new home. Questions have intensified over the past couple of years with increasing reports of wildfires, floods, hurricanes, tornadoes and a myriad of other risks that can damage property.
Understanding what’s covered and what’s not can save you from unexpected financial burdens. A recent Kiplinger article provides a good guide on the topic.
What’s generally covered:
1. Dwelling: Damage to your house and attached structures like porches or garages.
2. Other Structures: Damage to standalone structures on your property.
3. Personal Property: Reimbursement for damaged or lost possessions.
4. Loss of Use: Coverage for temporary living expenses during repairs.
5. Personal Liability: Protection against lawsuits for injuries or damages on your property.
Common Inclusions:
- Natural Disasters: Most policies cover damage from events like hurricanes, fires, and snowstorms, including detached structures.
- Contents: Home insurance typically covers the contents of your home, but evidence may be required for claims.
- Temporary Living Expenses: Expenses like hotel bills during repairs are often included, though with limitations.
- Liability Protection: Coverage extends to legal fees and medical bills for injuries on your property.
What’s NOT covered:
1. Floods: Standard policies don’t cover flood damage; separate flood insurance is necessary, especially in flood-prone areas.
2. Earthquakes, Landslides, and Sinkholes: Damage from these events requires additional coverage, especially in high-risk regions.
3. Water Leaks: Sudden leaks are covered, but damage from neglect or poor maintenance isn’t.
4. Mold: Unless caused by a covered peril, mold damage typically isn’t covered.
5. Valuables: Items like jewelry and collectibles may require additional coverage beyond standard plans.
6. Home Office Equipment: Business equipment may have limited coverage; additional endorsements may be needed.
Understanding your home insurance policy is essential to ensure you’re adequately protected against potential risks. If you’re unsure about your coverage, make a list of questions/concerns and contact your provider who can tailor your coverage for your needs.
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