Homeowners insurance has become a necessity for many people as they invest heavily in their homes and the valuables in them. The policy covers the structure of your home, the personal property in it and the liabilities that may arise from injuries or accidents to neighbors or guests. Fire, theft, vandalism, explosions, damages caused by motor vehicles, wind storm hail among others are the common perils covered by homeowners insurance.
The list of events covered in this policy is comprehensive but has limitations. There are certain common disasters that are excluded from the list that not even the best homeowners insurance company can cover. This implies that if the excluded disaster occurs, the policyholder will not be able to make any claims.
Knowing that not all potential damages will be paid for by this policy, separate policies and special coverages can protect against some perils. It is important to know what is beyond the scope of this policy. Here are common perils that will specifically not be covered by a typical homeowners insurance policy.
Earthquakes And Floods
A standard homeowner’s insurance policy will cover most catastrophes. Earthquakes, landslides, mudslides, subsidence, sinkholes damages and water damages from floods, waves, tidal water, and groundwater seeping up into the home will not be covered. If you reside in an area prone to earthquakes and disasters, you should buy a separate policy for each.
In most states, earthquake insurance can be purchased as an endorsement while a floods insurance can be purchased through the National Flood Insurance Program run by federal agencies. However, if your home is not near an earthquake or flood zone but is damaged by these events, you should include them in the homeowners’ insurance policy. You will pay a low premium because you are not in the threat zone and you will be compensated when calamity strikes.
Ordinance Of Law
When the government instructs you to rebuild or renovate your home to meet the set standards, the cost will often exceed homeowner’s insurance policy. Renovating damaged property as per the law may require you to use more expensive new materials.
For example, if a fire incident forces you to replace wiring in your home and the current building code necessitates a higher grade wiring, you cover will replace the older wiring only. The difference will be your responsibility, as you will receive only the actual cash value for damage and not the cost of these new replacements.
Including an ordinance or law requirement coverage in homeowner’s insurance policy will provide a long term solution to these mandatory changes.
Maintenance And Insects
Neglecting your home and personal property just because you have a home insurance will cost you. Any wear and tear, mechanical breakdowns, damages from power outages will not be included in your policy. If you fail to repair a leaking roof only for it to be destroyed by a storm or if you carelessly lose a personal item or intentionally damage your property, you will not be covered. Your claim could be rejected by the insurer over negligence.
Damages caused by termites, birds, rodents, rot, mold, rust, smog smoke damages from external operations are also not covered in homeowner’s insurance policy.
Others
Wars and nuclear hazards damages are beyond the scope of your home insurance policy. There are special exclusions for expensive personal valuables like jewelry, watches, expensive arts and furs, watercraft or boats.
If any of these valuables are stolen from your home, the insurer will offer limited coverage, usually, a small percentage of the sum insured. However, expenses incurred due to theft of any of these valuables from a different location will not be coved by the policy.