| Common Exclusions For Home Insurance |
| Written by James Black | |
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House insurance offers protection from a number of perils, but there are also quite a few things that your policy won't cover you for. Most policies contain several exclusions, or specific circumstances and events that the policy will not offer coverage for. Knowing what your policy includes and excludes is vital to being a smart shopper when it comes to home insurance. Far too many insureds have bought policies thinking their homes were covered against certain perils, only to find out that they're not when a disaster occurs. The HO-2 policy
Your policy usually will contain language describing these perils and what they encompass. The policy may also have language describing what the policy does not cover. These provisions are known as exclusions. The exclusions may be specifically spelled out in the policy, or the policy may contain language saying that all perils not specifically covered by the policy are excluded from coverage. Common exclusions for homeowners' policiesMost homeowners policies contain exclusions for the following:Floods and water damage. This exclusion typically not only applies to major flooding of your home, but also damage caused by your foundation or damage caused by water seepage into your home. This exclusion may also apply to damage caused by frost, or melting snow, or water-related damage caused by storm surge. Damages arising from mold problems are also excluded from many policies. This has become more common as an increasing number of health problems have been linked to mold. Damages caused by earthquakes and other forms of earth movement are typically excluded from homeowner's policies. Homeowners' insurance policies also typically exclude damages caused by insects or a vermin infestation. If you're concerned that a risk not covered by the standard HO-2 policy poses a substantial threat to your home, if for instance, you live in an earthquake-prone area of California, you can purchase additional insurance or a rider for your policy that provides coverage for perils not covered or excluded by your policy. Getting extra coverage will likely cost you more in higher premiums, but in the case of a disaster, you may be glad you bought the extra coverage. Remember that just because a peril is not specifically excluded by your policy, it still may not be covered by the policy. Also, some covered perils may not be covered under certain circumstances. Be sure to read and understand all language used in your policy. Knowing what you needWhen purchasing a homeowners' insurance policy, it is important to read your policy and understand precisely what the language of the policy includes and excludes. If the policy excludes a risk that you think your home might be prone to, you will likely want to purchase a rider covering that risk or find another policy.Understanding the policy from the start is vital, because waiting until after your home is damaged to find out your policy doesn't cover the peril which caused the damage is just plain dumb. Not only would you have paid insurance premiums for nothing, you'd also be left to foot the replacement costs of your home all on your own. When deciding what coverage you need, consult with your real estate agent and your insurance agent, and also take the time to talk to other homeowners in the area about events that have given rise to insurance claims in the past. Your new neighbors know the area best, and may be your best source of information concerning what coverage you should get. |
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