Cathy Lomasney's Blog
Homeowners insurance could potentially save you thousands of dollars in repairs and product replacements. If you don’t read through your homeowners insurance thoroughly prior to signing the policy, you could also be responsible for paying thousands of dollars to repair your roof, floor, a septic tank and more.
General events that homeowners insurance policies offer protection on
Depending on where your house is located, you’ll need different types of insurance coverage.For example, if you live in a high flood risk area, make you that you get flood insurance. The same applies for areas that experience hurricanes and mudslides.
Think twice before you sign a policy with an insurance carrier who won’t offer you the protections that are generally required where you live. As a starting point, following are common protections that a homeowners insurance policy offers:
- Fire damage
Damages that your homeowners insurance may not cover
Depending on your insurer, your homeowners insurance may not cover all natural disasters. For example, homeowners insurance may not cover damage caused by an earthquake. Floods, hurricanes and mud slides are other natural disasters that homeowners insurance may not protect you from.
Other damages that your homeowners insurance may not cover include:
- Chemical warfare
- Mold (You could get rid of a small amount of mold in your bathroom, kitchen or another room at your house on your own. But,let mold spread into your walls and you’ll need to contact a professional to inspect, clean away the mold and treat your home. Don’t assume that your insurance carrier will pick up the cost of these repairs. Check to see that mold is covered in your policy before you enter into an agreement with a homeowners insurance provider.)
- Plane crashes (This is an uncommon event, but it happens. Should a plane land on your house, as destructive and emotionally damaging at the experience may be, your insurance carrier may not pay for repairs that are associated with the plane crash.)
- Auto accidents (Similar to plane crashes, if someone runs their car into your garage or house, your insurance carrier may not pay to have the property repaired. If your house is located on a road that has seen its share of auto accidents, speak with insurance carriers to see if they will offer you coverage that protects your home against auto accidents.)
- Damages due to aging (for example, if your roof becomes damaged due to age, your insurance carrier may not pay to replace the roof)
As with any type of insurance, including auto and health insurance, check with your insurance provider to determine what you are actually covered for. Do this before you sign an insurance policy. Generally, the broader the span of coverage, the higher your monthly premiums will be. But, these higher premiums can prove to be well worth it should an unexpected emergency or disaster occur.
Also,compare insurance rates across companies. Keep your eyes open for regulatory changes that could impact your insurance rates. For example, if your homeowners insurance goes up, check to see if a new state law impacted the industry, causing insurance carriers to raise rates in the state that you live in.