Home insurance protects you against all kinds of damages to your home. The worst thing that can happen is facing a disaster and paying for it out of your own pocket. That is exactly what happens when you don’t insure your home. To avoid financial bankruptcy, you must opt for home insurance.
However, it is worth mentioning that home insurance does not cover everything. It covers your house, belongings, and outside property, but certainly not everything.
Let’s explore three things your home insurance might not cover.
1. Natural Disasters
Depending on your location, you will not have full natural disaster coverage for your home. Many people assume that their policies cover all damages related to these occurrences, but this is far from true. In reality, you need to combine various coverages to efficiently protect yourself against all-natural disasters.
If your area experiences heavy rainfall, your home might get flooded. However, home insurance does not cover flood damage, which requires a different coverage. Also, there are nuances you need to know to fully understand what is covered in what situation and what isn’t.
Even if the flooding is caused by an earthquake or hurricane, you will need to add a separate policy to have more coverage. If you live near the coast, you might need separate wind insurance, which can also wreak havoc on your property, especially from a hurricane.
Simply put, home insurance does not cover the impact of natural disasters. You need to do your research and combine it with other policies to have better coverage. Speaking to home insurance agents will tell you everything you need to know before picking the best policy.
2. Water Damage
Water damage does not only occur from natural disasters like earthquakes and hurricanes, nor does it only occur due to heavy rainfall. You may damage your property from pipe or roof leaks, which are not included in your homeowner’s policy.
If water from a pipeline backs into your home and causes significant damage, you will likely need extra insurance. For example, water backup coverage is often combined with home insurance to cover water damage.
Before you can file a home insurance claim with your insurance company, you need to prove that you are making efforts toward maintenance. If you are negligent and let your problems escalate into damages, you may not have a valid claim.
For example, if your pipes have been corroding for a while and you’ve ignored it, it can be classified as negligence. It all depends on the investigation and how you frame your problem. You can expect to receive about 11,000 USD for your average water damage claim, provided it was not your fault.
3. Injured Guests
If you’ve listed your property on platforms like Airbnb, you will have guests over several days per month. This means there is always a chance of someone getting injured on your property. If this does happen, your home insurance will not cover the mishap.
Similarly, if your guests have a drunken party in your home, they may damage your property. Your home insurance will not cover this either, meaning you must opt for extra coverage to compensate for these lacks.
However, this does not mean that some home insurance policies do not offer extra coverage. You can buy special types that cover property damage and even opt for extra coverages for insect infestations.
Before choosing suitable coverage, you must do your research and consult insurance agents to know what’s relevant to your needs.
What Home Insurance Will Not Cover
- Intentional damage. If you damage your property on purpose or if someone was directly responsible for a loss, your home insurance company will not reimburse you for it. For example, if you drunkenly cause an arsenic incident in your home, your home insurance will not pay you for it. However, if someone else is responsible for the damage, you will receive compensation.
- Electricity malfunctions. If your electricity provider cuts your power and it leads to appliance malfunctions or property damage, you will not get compensated for it. There may be some exceptions that are worth looking into.
- Deteriorating property. If your possessions or valuables deteriorate and you do not replace them yourself, your home insurance will not cover the loss. Home insurance mostly applies to accidents and mishaps and does not cover natural deterioration.
Best Coverages That Combine With Home Insurance
- Flood Insurance. We’ve mentioned that flood insurance covers damages from catastrophes like hurricanes and earthquakes. It also covers damage from burst pipes, making it an excellent option to consider with home insurance.
- Mold Coverage. You may experience significant mold growth in your home, which damages the property. Depending on the cause, you could do with the extra coverage since home insurance does not cover all types of mold damage.
Morgan Elite Specialist Services are claims professionals in TX that provide valuation services for your home. They can send their representatives to your property, help you go through your policy, assess the damage, and formulate a valuation. Contact them at 855-445-3404 to report a claim and build a case for yourself.
