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Find Out What is Damages Covered by Homeowners Insurance
by Admin ·
When buying insurance coverage for your home, you should take the time to find out what is covered by your policy. While most homeowners insurance covers damage to the home, there are many things not covered by most policies that you should be aware of. Armed with this information, you should ask your insurance agent what damages are covered in your policy.
Fire
Most basic homeowners insurance policies will cover damage by fire. This means that you insurer will pay you to repair fire damage on your home, but most policies do not cover fire damage to the land. So, if a fire damages your home but also trees and landscaping on the property, the insurance would only cover damages to the home, and the owner would have to pay for replacing trees and other landscaping elements.
Natural Disasters
Basic home owners insurance policies usually cover damage to homes as a result of natural disasters. If you have a basic policy, you will be reimbursed for repairs of damage done by high winds, lightning, hail, and rain. For example, if wind or hail damages your roof, your insurance company will pay to repair your roof. However, most policies do not include flood or water damage. Flood insurance is usually purchased separately. If you live in an area that is prone to floods, it is very important to purchase this extra insurance so that you will be covered in the event of a flood.
Water Damage
Damage to the home caused by water is usually covered by most homeowners policies. Water damage usually means damage to the home caused by rain. Damage caused by plumbing disasters like burst pipes is also covered by some insurance policies, so check with your agent. It bears repeating that water damage due to floods is usually not covered, and extra flood insurance must be purchased.
Loss
Most policies typically cover damage to or destruction of property within the home. Damage due to vandalism or theft is usually covered by basic homeowners insurance. In the case of theft, insurers will cover the cost of replacing property at current market rates. Most policies will cover personal property up to a certain amount, so it’s a good idea to give an accurate assessment of the value of your property to your insurance agent. Specific valuable items like art or high-end electronics are not usually covered, so you need to ask your insurance agent to list these items specifically on the policy.
Renter’s Insurance
Insurance for people who are renting a home generally covers less than insurance for those who own a home. Renter’s insurance, also called tenant’s insurance, typically only covers personal property within the home. The landlord or owner of the property should have insurance to cover damages to the home due to fire, water, and other events. Like with property loss in homeowners insurance, renters should make accurate assessments of the value of their property and list any specific valuable items they wish to be replaced.
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Tags: Flood insurance, homeowners insurance, homeowners policies, insurance agent, insurance company, property, Water Damage