Home insurance policy: what is covered and where the gaps are
There’s a lot of confusion about what an ordinary home policy covers: all the things people think they’re covered for and aren’t and, on the other hand, all the things they can claim for and often don’t. they realize they can do it.
Buy a homeowners policy that includes both the building and its contents; Otherwise, a home fire could cripple your family’s finances for years.
Gone are the days of fine print exclusions, public opinion has persuaded insurance companies not to use smaller print than is normally used in a newspaper. This has now made home insurance companies competing for the consumer’s dollar never more competitive.
Due to the wide variety of policies, This article should be taken as a general guide onlyraising points to verify with your policy where appropriate.
Do not take for granted the following items to be covered in your new policy, check first before signing.
It’s wise to check your policy’s renewal cost against what you paid last year, because the insurance company may have increased the premium “to account for inflation.” Some companies do not make it clear that they have done so.
What is covered?
Items that people can claim under their normal head of household policy often don’t realize they can! Your homeowners policy not only covers your home, but your entire property, including your front yard and backyard.
This means that you can claim for the theft of everything, from the flower pots to the clothes rack. Many people who live in apartments, where clothes have been stolen from washing lines, don’t realize that they are also covered for the stolen clothes (either depreciated value or replacement value depends on the policy).
Your car, companies consider this as a different kind of risk. Whether you live in an apartment or live in a house, you are not covered for theft of the car itself. Your auto insurance must be a separate policy.
boats they are also excluded from the theft protection of a normal home policy. For example, you may have a boat stolen from the top of your car in your home garage and you can’t claim it, but you can claim your swimsuit, towels, and beach gear that were also stolen.
Even if they home property damage it’s your fault, most policies accept this. For example, a housewife forgets that food is cooked with fat that overflows and causes a fire, damaging the stove, walls, ceiling and curtains.
important point, you are moving house and have moved some of the furniture and belongings. If there is a break-in at your current or intended home, then it is not covered by many policies if the insurer has taken a legalistic interpretation. These policies stipulate that the house must be sufficiently furnished to be fully inhabited. Since many insurers consider this a “gray area,” you may want to notify insurers to find out exactly how they interpret the situation. Better to find out sooner than after a robbery.
Engines.The motor of your washing machine burns out. Most policies pay for the replacement engine. This also goes for your dishwasher, refrigerator, and air conditioner in your home, even the motor in your pool’s filtration system. Most cover electric motors in various appliances.
Most policies don’t cover electronic parts of your TV, radio, or stereo that burn out. A subtle distinction is the stereo’s engine, but not components like the baffle or tweeters.
“All Risks”The policy generally does not cover any damage caused by vermin, such as moths on a fur coat, mildew, or wear and tear. It also does not cover mechanical failures, such as overwinding a watch or a broken television or radio. Although you can assure separately against a television breakdown.
The typical “all risks” policy may not cover damage that occurs during or as a result of riots or war, or any repair or renovation process.
Some policies also exclude broken glass from a watch or scientific instrument. While a wall-mounted barometer will be covered by most policies, an alarm clock isn’t meant to break its glass face.
“All risks” is possibly one of the biggest areas of variation, and it’s worth reading this section of your policy’s terms and conditions before signing.
If a spark from your incinerator starts a fire that gets out of control and burns down your neighbor’s house, you are covered under the personal liability section of most policies.
If your car’s parking brake doesn’t hold on a steep driveway and the car backs up into the wrought-iron front gate, the insurance coverage is only for what hits the car. Damage to your car is covered under your motor vehicle policy.
Damage to your fence, wall or gate, you are pretty much covered against anything that falls from the sky. Insurers even consider disintegrating satellites “aircraft.” Fireballs, meteorites, and other similar phenomena are also usually covered.
If someone steals your fence or gets run over by a runaway truck, you’re usually covered. You are covered against theft or damage, but it’s a shame if a “fire bug” decides to take out its pyromania on your hedge, it’s not covered.
“Storms and Storms”. People commonly believe that the policy of their heads of household covers them, and this is not the case. Storm and tempest coverage does not include flooding, which is defined as the violent and temporary escape of a large body of water from the normal limits of any natural or artificial water course, such as a river, lake, canal or dam. Insurance companies view flooding as a separate riskand require an additional premium to specifically insure against it.
The usual exclusions in a home policy include loss or damage from the sea, tidal waves or high tide. Many policies also exclude rainwater damage, unless it enters the building through an opening in a wall or roof, caused directly by the storm.
Many policies pay if the rainwater damage was caused by downspouts or gutters becoming blocked by falling leaves during a storm. This is because the policy generally covers overflowing of water tanks, appliances or pipes; gutters and downspouts are normally treated as “water fixtures”.
Storm and Tempest includes damage caused by wind and wind-driven rain. Damage caused by a landslide due to torrential rain is not covered by many policies. Your gates, fences or retaining walls if they are knocked down or washed away? excluded!
not the contents of a domestic freezer, in case the unit breaks down, or if a power outage occurs, such as a blackout caused by lightning at the local substation, or a car knocking down a power pole. However, many companies offer this coverage for a few dollars a year plus dollars a year.
“cracktrap”,you’re shaving and you drop the razor into the ceramic bowl which breaks, but not quite. His claim would be rejected. Insurance companies stipulate that a fracture must be clean through its entire thickness. In other words, it has to be a complete break. This also applies to toilets, bathtubs and fixed glass that are normally part of the furniture. For example, the mirrors of a dressing table.
Livestock, such as chickens, are excluded. Surprisingly, so is the family dog or cat, even if they have pedigrees. They are technically “livestock” and a special “livestock” policy is required.
If you forget to lock your house when you go out and you’ve been robbed, you may not be covered. Some policies stipulated that theft must result from “burglary and entry.” Paradoxically, if you lock the house and then leave the front door key under the rug or in the flowerpot (as many people still do despite police warnings), most policies will still cover you. . This is because someone who turns the key in the lock is technically considered a thief who gets in and out like someone using a lever in the lock.
Accidental breakage of the glass of a hand mirror or the glass of a radio or TV set is not usually covered.
Light fixtures, draperies, and rugs are often not included in buildings-only mortgage insurance policies. Check the terms and conditions of your policy or, to clear any doubt, insure both your buildings and their contents.
Insurers will not cover damage to property caused by the normal application of heat, such as an iron, blowtorch, or any other process, but they will cover fires that result from this heat. For example, you are not covered if you burn a shirt you are ironing, but if the burned shirt sets the house on fire, you are covered.
A burst water pipe; not covered for repairs to the defective portion of the pipe, only the costs of exploring to locate the leak, plus any damage to the ceiling, carpeting, or wallpaper, plus replacement of the rest of the pipe. The same situation applies to a leaking pipe from an oil heater.
You finally manage to prune that overhanging tree in your front yard, sadly a branch falls off and crashes through your roof. A claim would be denied by most insurance companies. Policies typically stipulate that damage caused by falling trees or branches will only be covered if it is due to natural causes, such as wind.
Works of art, curios and other valuables; Coverage for each item is typically limited to just five percent of total coverage under many policies unless specifically noted. It’s important to read your policy to see if its limitations affect any valuable items you have.
A man knocks on your door and offers to clean your windows for a fee. He falls off the ladder and breaks his leg. Is he covered for his medical expenses and loss of purchasing power during convalescence? No, he needs a separate workers’ compensation policy, which covers him for virtually unlimited liability as an employer. Or, before he starts work, he asks if he has a personal accident policy.
Your home has been stolen or damaged by fire, storm or storm, and you have not notified the insurance company that you have been away from home for 30 consecutive days, for example, on vacation. Your insurance protection will be voided under many policies at the discretion of the insurer. (Some policies offer a notice period of up to 60 days.)
The contents of your home will not be covered by some policies if you rent your home and do not notify the insurance company in writing.
You rent your house while you are on vacation. You return to find that the tenants have damaged the property, for example, a wild party. By rentalhas automatically canceled the malicious damage protection on your homeowners policy.
It pays to do your due diligence on all insurance policies, otherwise it can be very costly.