If you’re like most people, you probably don’t think much about your homeowner’s insurance until something goes wrong. Like catastrophically wrong. We get it. No one likes to think about potential disaster, but the fact is, things go wrong at a certain predictable frequency. Sooner or later, your insurance is going to come in handy.
Unless you’ve taken the time to read your policy, you may not know if the loss you’ve experienced is covered. The truth is—there are several types of losses that are excluded from coverage in the typical homeowner’s policy.
The good news is that you may be able to add coverage for these types of losses by adding an endorsement (sometimes called a policy rider) to your homeowner’s policy. In some cases, if you can’t add the coverage by endorsement, you can purchase a separate policy for risks that aren’t covered.
Here are some of the typical exclusions to homeowner’s insurance.
- Flood: Flood damage is excluded from homeowner’s insurance and is only available through the National Flood Insurance Program (NFIP). You don’t have to live in a flood zone to experience damage from flooding. Flood insurance can be purchased from an approved NFIP insurance agent.
- Earthquake: If you live in an area of the country that experiences frequent earthquakes, you understand the damage that can happen to homes and property. By adding an earthquake endorsement to your homeowner’s insurance, repairs to your home and damage to other structures not attached (such as a garage) are covered.
- Valuable personal property: If you own valuable personal property like expensive jewelry, computer equipment, fine art, etc., you may need to schedule coverage since the typical homeowner’s insurance policy sets a dollar limit for these items. This will ensure you’ll be able to replace them in the event of a loss.
- Business equipment: If you operate a home business, you may have equipment at your home that you use in your business operations. This equipment is not covered by your homeowner’s insurance unless you add a home business endorsement to your policy.
These are only a few of the additional homeowner’s insurance options available. You should carefully review your insurance policy to make sure you have the added protection you need. If you have questions, we’ll be glad to review your policy with you!