The Complicated World of Insurance Made SimpleThe Complicated World of Insurance Made Simple


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The Complicated World of Insurance Made Simple

When I bought my first home, I had a real estate agent lead me through the entire home-buying process. This made it simple and easy for me. However, when it came time to choose a homeowners insurance policy, I became very confused about what made up a good policy. I started by doing a lot of online research into what homeowners insurance features were needed in my area and then finally called an agent who led me step-by-step through choosing the policy that was best for me and my home. I learned a lot during my research and time spent talking to my agent. I have also learned a lot about other types of insurance over the years, so I thought I would start a helpful blog all about insurance. I enjoy helping others, so come back often for new tips!

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What Things Are Excluded From Homeowner's Insurance Coverage?

If you own a house, you should have homeowner's insurance, as this is the only way to protect your home and possessions, but do you realize that homeowner's insurance does not cover everything? There are things that are excluded from coverage with a basic homeowner's insurance policy, and here are some of the things you should know about.

Valuable possessions

The first thing that a basic policy will not cover is valuable possessions you own and store inside your house. This can include your diamond wedding ring, other valuable jewelry, firearms, art, and anything else you own. To protect these types of items with home insurance, you would need to tell your agent exactly what you own and add riders, also called add-ons, to your policy to make sure they are covered.

Flood damage

The second thing your insurance policy will exclude is flood damage; however, if your house floods due to an instant plumbing problem, it is likely to be covered. If you experience flooding for any other reason, you would not have coverage. You can add flood coverage to any policy, though, if you want to make sure you are protected against flooding.

Damage caused by a lack of maintenance

Homeowner's insurance will also exclude covering problems and damage you experience due to a lack of maintenance. If you do not cut down dead trees in your yard, for example, your policy will not cover the damage they cause if they fall on your home. If you do not maintain your roof and end up with water damage, this would also be excluded from coverage. If you want everything to be covered, make sure you keep up with all the maintenance your home needs.

Problems with your systems and appliances

Finally, you should never expect your homeowner's insurance policy to pay for the costs of repairing or replacing your appliances or systems, including your furnace, AC system, and hot water heater. These things are never covered with homeowner's insurance. If you want them to be covered, you could purchase something called a home warranty. This is similar to an insurance policy but is designed exclusively for home systems and appliances.

These types of things will not be covered under your regular homeowner's insurance policy, but there are ways to get coverage for some of these things. If you have questions about coverage or adding riders to your policy, talk to a homeowner's insurance agent, like those at Crowel Agency, Inc.