To understand what your standard homeowners insurance policy covers, start by asking your insurance agent lots of questions and reading the fine print in your contract. Although every policy is different, most policies cover similar things.
Key takeaways for what home insurance coverage will cover vs what standard homeowners insurance won`t cover
- Most homeowners insurance policies cover certain basics, but there is a great deal of variation between them, so be sure to read the fine print before making a purchase.
- Your homeowners insurance may cover the same things as other types of insurance you have causing some overlap in coverages.
- Coverage under a standard home insurance policy requires a deductible to be paid
- If your property is damaged or destroyed due to vandalism, fire, or certain natural disasters, it is usually covered. Your liability is also covered if someone is injured on your property.
- Some disasters, such as floods or earthquakes, are not usually covered by standard homeowners insurance and require separate insurance.
What Homeowners Insurance Covers
Your personal belongings are usually covered under your policy as well. The specific protection for your personal belongings is often called contents insurance. Insurance to cover personal belongings may be limited on certain types of high-value items, such as jewelry or artwork; often, you will need to purchase additional insurance coverage specifically for these assets.
What is replacement cost vs. fair value?
Some home insurance policies will not provide homeowners with the replacement cost of the property. Having insurance coverage for replacement costs will help to close the gap caused by inflation and the loss of value when the property is no longer new. Otherwise, when you make a claim for a loss, the item will be evaluated at its current fair market value.
Since some items may lose value rapidly, this would mean you may not receive enough money from a claim to replace the items that were destroyed or damaged. Replacement-cost coverage would guarantee that you’re able to replace the lost items with similar items. If having this insurance coverage is important to you, you’ll want to confirm that both your home and personal belongings are covered in this way.
Does homeowners insurance cover mold damage?
The extent to which your homeowners insurance covers mold damage depends on the cause of the mold problem. In general, if mold is caused by long-term leaking, poor home maintenance, or naturally occurring flooding, then your homeowners insurance likely will not cover it.
However, if the mold is caused by an unforeseen problem - like a plumbing leak that suddenly appears - your insurance company might cover the mold damage if you act quickly.
Termites, rats, and other infestations
Homeowners insurance typically does not cover damage caused by animals, rodents, termites, or other insects, except in very rare circumstances.
If a termite infestation causes part of your house to fall down, that would probably be covered under the "collapse" part of your policy's extra coverage section. But if you just want to get rid of an infestation from your house, you'll probably have to pay for that yourself.
Car Coverage
Most homeowners insurance policies cover personal belongings and separate structures on your property. But what if your car is broken into while it’s in your driveway or garage? This is where the distinction between your home and auto insurance policies can become a little unclear.
Damage to your car is would not be covered by your homeowners insurance, but it may cover items that are stolen from your car. Some more comprehensive auto insurance policies may also cover this. Insurance companies may limit the coverage available if the items stolen were purchased only for use in the vehicle.
Fire Coverage
Home fires are a leading cause of damage to residences, and nearly every homeowners insurance policy provides coverage for structures and personal belongings against them. If a home is completely ravaged by fire, most standard policies that include fire coverage also pay for additional living expenses, such as hotel stays, rentals, or food and restaurant bills.
Does home insurance cover water damage?
Your homeowners insurance policy typically covers a variety of natural disasters, though not all of them. The most common natural disasters that are covered by these policies include lightning, thunderstorms, hurricanes, and hail. Your policy may also include coverage for smoke damage, damage caused by falling items, or severe winds.
Does different types of homeowners insurance cover damage from vandalism?
Vandalism is usually covered under an all-risks or all-perils policy unless it's specifically excluded. Vandalism coverage applies to unoccupied homes, but not to vacant homes after a certain period of time. An unoccupied home is one that still contains the personal property of the policy owner, even though the property owner is absent. A vacant home is one that doesn't contain the personal property of the policy owner.
Personal Injury
Most standard home insurance policies will cover you if someone is injured on your property and it is determined that you are at fault. This could be something as simple as someone slipping on a patch of ice on your front walkway or falling because of a broken step on your porch. However, this coverage is usually limited to a certain dollar value, so you will want to know exactly how much coverage you have and what is included. If you feel that you need additional coverage, you can always get umbrella insurance.
Does insurance companies cover wear and tear as part of homeowners insurance?
This refers to your neglect to take any reasonable steps to prevent your property from being damaged. In other words, damage to your home caused by normal wear and tear, obvious and preventable leaks, and routine maintenance issues are not usually covered under homeowners insurance.
For example, if a kitchen sink pipe leaks over a period of weeks or months, causing wood rot in fixtures and floorboards, your insurer could deny the claim citing the neglect exclusion.
However, if a plumbing malfunction causes a leak and mold growth inside your walls, your insurer may not be able to prove that neglect led to the loss and you may be covered for the damage.
What Is a Homeowners Insurance coverage deductible?
The amount you have to pay when you make a claim is called the deductible. You can lower your insurance costs by increasing your deductible, which means you would have to pay more if you ever had an incident that required a claim. Remember, many mortgage providers require homeowners to carry a certain amount of insurance on their property with a deductible that is below a specified limit.
The bottom line for what is covered by homeowners insurance policies
Although it may not be the most riveting reading, it is important to take the time to understand what your insurance policy covers. This way you will be prepared in the event that you need to rely on your homeowners insurance coverage. Not knowing what your policy covers could lead to problems down the road.
If you are in need of homeowners insurance in Greenville give The Morgano Agency a call today
The Morgano Agency would be glad to offer you a free homeowners insurance quote by comparing home insurance policies from several home insurance carriers to find you the best home insurance coverage at the best rates. Our insurance agents can also answer any questions you may have about what is covered by a homeowners insurance policy vs what is not covered by your home insurance. Cotact us today.