Your home insurance policy may offer you a wide range of covered events, but it is not a comprehensive policy and, like anything, has its own set of exemptions. In order to understand the specific events that are not considered insurable incidents by your insurer, be sure to take a look at your policy. The following is a general list.
- Flood damage: Believe it or not, the damage caused by a flood is not covered in your home insurance policy. Even if the flood comes on the heels of a hurricane, if the damage is due to flood waters, your home insurance policy will not cover your claims. Instead, you must make sure that you have a flood insurance policy in place.
- Bed bugs: Unfortunately, those creepy creatures, the damage they cause and the expenses related to getting rid of them are not covered in your home insurance policy.
- Mold: While this isn’t the case in every single home insurance policy, many of them do not cover the damage associated with mold nor the expenses of treating it.
- Intentional damages: If you damage your home while completing home renovations, or if you intentionally damage your home in the hopes of getting paid from an insurance claim, then you will find that the damage is not covered. Remember, insurance is meant to make you whole after an unexpected insurable incident that was not your fault.
- War: Acts of war that cause damage to your home (including nuclear war or damage from wars fought on home territory) are not covered under home insurance policies.
- Neglect: As a homeowner, you have an obligation to perform upkeep and preventative maintenance on your home. If you neglect these responsibilities and your home falls into disrepair, your home insurance policy will provide no protection.
- Government action: If your home is seized or confiscated by a government entity, it may not be a covered loss under your home insurance policy.
- Mandatory building code upgrades: If you suffer a complete loss and the cost to rebuild exceeds your limits due to mandatory building code upgrades, the higher costs will not be covered (this can be avoided with special riders added to your home insurance policy that complement your limits in the event of code changes).
- Policyholder injury: A liability portion of your home insurance policy will cover the medical and other expenses for a person who is injured on your property under the right circumstances, but it will not cover your injuries or anyone else who lives in the home if they are injured on the premises.
Every policy has its own exclusions; therefore, you should read yours to find out what particular risks are not covered. Some policies, depending on the class, may exclude natural incidents like earthquakes and sinkholes, while others won’t cover things like water damage, which includes sewer problems and foundation issues due to water leakage. Home insurance policies have many different classes (noted as HO-1, HO-2, etc.) and each class has its own subset of covered and not covered risks. Ask your agent or insurance company if you need help understanding your policy or homeowners insurance class. To learn more about Miami home insurance and to answer any questions you may have, give us a call at 305-270-2100.
A homeowners insurance policy offers you and your family the financial reimbursement you will need to get your life back on track after an insurable event. But the financial benefits of having homeowners insurance are not experienced by policyholders unless they endure an insurable event with a financial impact that exceeds their deductible. Of course, that doesn’t mean that there are no intangible benefits to enjoy as you pay your premiums each month.
Peace of Mind
When you know that you have an insurance policy protecting you and your family, then you have peace of mind. That might not prevent an incident, but it can definitely help you sleep at night. Without homeowners insurance you are left with a subconscious nagging prompted by the insecurity that being uninsured brings with it. In this state, a lot of mental and emotional energy is used up wondering how you would rebuild your family's life if your home were to become ruined in an insurable event.
Insurance also ensures your financial stability. You probably have big plans for your retirement, your children's educational future and the repayment of your debt. But, without homeowners insurance to ensure that your personal savings do not need to be used after an insurable event, there is no guarantee that you will be able to realize any of these plans and dreams in the manner you want. Instead, you may be forced to use the money you saved just to rebuild your home after a tragedy. Saving money without knowing that you will be able to use it the way you expect can leave you feeling insecure and may even impact your motivation to save.
Insurance is a serious matter. It's not a fun purchase and it is not something that you will use in your everyday life. A homeowners insurance policy gives you permission to not dwell on how expensive and devastating an insurable event can be and the confidence to know that you will be able to recover financially after one.
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