| There are things that can happen to their homes that their homeowner's insurance policies don't cover. Fire is the basic coverage provided by an insurance policy, while other common perils are water damage, theft, wind, and liability. Earthquakes and floods usually require a separate policy. In some states, you can add earthquake coverage as an endorsement. It is essential to discuss the risk you face and purchase the proper coverage. Just so you'll be forewarned, here are eight other perils besides damage from an invading squirrel, for which you probably aren't insured. 1. Floods
Damage caused by flooding is excluded under standard homeowners insurance policies, according to the institute's primer on what disasters are covered by insurance. That's why it's prudent to obtain flood insurance, either from a private insurer or through the U.S. government's National Flood Insurance Program. 2. Earthquakes
When a 5.8 magnitude earthquake in Virginia shook the U.S. east coast in 2011, it caused as much as $300 million in losses and varying degrees of damage to 600 residences. Many of the owners may have been chagrined to discover that their homeowner's insurance didn't cover the cost of repairing the harm to their houses. Coverage for earthquakes, which can damage foundations and collapse walls, requires a separate policy. However, according to the institute, a standard homeowners policy generally will cover damage from fires caused by quakes. 3. Sewer Backups
According to the institute, sewer backups can be pretty messy, and they're not covered either by homeowners insurance policies or flood coverage. Instead, you'll need to purchase additional sewer coverage. 4. Maintenance Damage
Maintenance damage. According to the institute, homeowners' policies don't cover damage caused to your home by your neglect of basic maintenance. Similarly, you're not covered if your house becomes infested by termites and other pests or develops mold. 5. Backyard Trampolines and Pools
Sure, they're fun. But according to the National Association of Insurance Commissioners, both trampolines and pools are dangerous enough that some companies may not insure your property if you have them or else may exclude liability for any injuries related to them. They may even cancel your policy if you don't inform them when you get a trampoline or a pool or follow the policy's safety guidelines. 6. Dog Attacks
If your family pet bites a visitor, you're typically covered for legal liability up to your policy's liability limit — usually $100,000 — according to the institute. The average dog bite claim is around $39,000, so you should be OK. But it's a bigger problem if you own a breed with a reputation for being aggressive because some insurance companies won't cover you at all. 7. Expensive Jewelry
Typically, homeowners' policies set a limit on how much bling they'll cover — usually around $1,500, according to the institute's article on jewelry and other valuables. If you've got a lot of costly rings or necklaces, you'll want to consider getting a floater policy, which covers any sort of loss, including dropping your ring down a drain. That'll require you to get the items appraised professionally. 8. Your Stuff in Someone Else's Basement/Attic/Garage
Suppose you've got a friend or neighbor who allows you to store some of your possessions at their home. In that case, you could lose out in the event of a disaster, according to Amy Bach, executive director of United Policyholders, a California-based consumer advocacy group. That person's insurer isn't going to cover your losses since you're not the homeowner. "You'd have to try to collect money from your friend," Bach says. |
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