Home Insurance Articles
What Home Insurance Does Not Cover
2010-05-26
When disaster strikes many take a deep breath and say "Thank God, I have home insurance!" Is it that simple? There are exclusions in policies such as earthquakes, biting dogs, and terrorist destruction. Many aren't aware that if their teens play with matches and the house catches on fire, there is no coverage available. When a home insurance claim is denied, the homeowner is left devastated and there is next to nothing they can do about it. When searching for a home insurance quote, a thorough check into the policy is necessary. One should check for such gaps in coverage especially if situations sited are most likely to occur where their home is. There are some exclusions that are out of your control. For instance, no insurer will provide coverage for a nuclear accident. There are exclusions that vary from insurance company to insurance company. One provider may allow you to purchase extra coverage to cover the things that another insurance provider won't cover.
It was not that long ago, that if a pipe ruptured in a home, the insurance company would most likely pay for the damage, and even pay for mold remediation. Today's policy may have exclusions where mold is not covered. Why? Due to a huge increase in mold claims in Arizona, Nevada, California, Texas and Florida, many companies are overwhelmed with claims, causing them to try and reduce or eliminate their financial risk. More than 30 States are allowing insurance companies to cap their mold coverage or even exclude it altogether. Many insurance companies have put a limit on how much water damage they will cover as well.
If the U.S. is ever invaded by another country, your insurer will not cover any damage done to your home, and if a terrorist were to strike your home, you are on your own there as well. Insurers have always excluded war and nuclear catastrophes from coverage.
The biggest problem with having homeowners insurance is that the only time anyone considers their policy, is when they are paying their premium or when they need to make a home insurance claim. Most are too busy to watch the news or take notice of events that are happening until it is too late. What is recommended when searching for a home insurance quote? Most mortgage companies have a list of companies and brokers that will assist in finding a tailor made policy that will fill gaps that many insurance companies don't. These insurance specialists work with many companies and know where the gaps in coverage exist. Finding the best price, lowest deductible and best overall value is important to any home owner.