A homeowner’s insurance policy is a great way to ease your mind about potential risks to your family, home and belongs. But don’t make the mistake of assuming that all policies are the same, or that your policy guarantees that your home and personal belongings are properly insured against all losses.
If you want to know what is not covered by your homeowner’s insurance policy, you can look at the exclusions. Most homeowner’s policies exclude coverage for mold damage, war, terrorism, nuclear accidents or disasters, neglect and intentional damage.
To understand your homeowner’s policy coverage, you need to know a little more about what is on your policy declarations page. Simply put, the declarations page outlines the details of “who, what, when and where.” Here is a brief overview of the information contained in your homeowner’s policy declarations page:
- Policy number
- Name and address of insured
- Property covered (dwelling, other structures, any personal property, additional living expenses, and liability coverage).
- Any discounts applied
- List of exclusions
- Policy deductibles
- Premium for policy period
- Endorsements and policy forms
- Mortgagee information or other parties that have legal interest as a creditor
Business equipment used in a home business has only a limited amount of coverage in most homeowner’s policies. You also have no liability coverage for your home business with homeowner’s insurance. The liability portion of the homeowner’s policy will protect you against damage to others or their property resulting from a home business operation or a faulty product. If you run a home business, you may want to consider purchasing business insurance.
Any damage caused by a flood is not covered under your homeowner’s insurance. For flood protection, you must purchase insurance from the National Flood Insurance Program (NFIP). Flood insurance is sold by insurance agents approved by NFIP to sell flood insurance. There are special training courses regarding flood insurance that must be passed before an agent can sell this coverage.
We’d love the opportunity to sit down with you if you have questions about your homeowner’s coverage. It is better to spend a little time now learning about your coverage than being surprised later when we’re unable to cover a loss. http://www.gross-ins.com
