Home Insurance Articles

5 Often Overlooked Home Insurance Claims

2010-02-17

Mortgage companies require their customers to carry homeowner's insurance, and insurance can be a huge help when a disaster strikes, whether it's fire, falling trees, or anything else that causes serious damage to a home. However, many homeowners ignore major home insurance claims, and this can cost them hundreds or even thousands of dollars.

For example, minor tornado damage, which is covered under many insurance policies, is often neglected. Homeowners should carefully inspect their property after severe storms; damage to a home may appear minor, but can cost quite a bit in the long run. The same is true of earthquake damage, which usually needs to be purchased separately. Inspecting a home for cracks in the foundation can save homeowners thousands of dollars, even if the earthquake seemed relatively minor. Damage from trees can also be covered in some instances, even if the tree falls onto a neighbor's property. Regardless of the reason for damage from environmental factors, you should call your insurance company right away to see if your homeowner's insurance will cover the costs.

Many homeowners don't spend a lot of time in their basements, but serious problems can gradually take hold under many houses, so be sure to regularly inspect basement walls. Your home insurance coverage will often take care of some basement issues, and even if your claim is denied, it's important to fix basement problems early so that other claims aren't excluded. Basements can also be subject to flooding, and if you're paying for flood insurance, it's important to read your policy carefully to see how your insurance company defines a flood. If your home or your property is damaged by water, there's a decent chance that your flood coverage can provide some much-needed reimbursement.

The most important thing to remember is that a home insurance claim can be made for minor damages, so inspecting your house regularly is absolutely important. You might even consider hiring an independent home inspector once a year to look for damage that could be covered by your homeowner's insurance. Know your policy, and contact your insurance agent immediately if you don't understand any terms, especially terms relating to exclusions. If you're looking for a new home insurance policy, you should get as many quotes as possible, and look at more than just price--most homeowners will be able to make a claim at some point, so knowing your coverage is absolutely essential. You don't need to spend all your time researching policies and looking for damage, but taking a few steps to ensure that your policy is working correctly can save you thousands of dollars.