Home insurance offers extensive coverage, and as is the norm, homeowners focus heavily on the areas that are covered and overlook the areas that are not covered. Therefore, it's always good to know what's not covered in your standard home insurance so that you can get additional insurance that fills the gaps.
Here are common problems that are often excluded from standard homeowners' insurance.
Natural disasters such as flooding, hurricanes, and earthquakes leave destruction in their wake. Most insurance companies couldn't afford to cover these disasters under a standard home insurance policy.
This isn't to say that insurance companies don't cover these disasters. They do, but under different insurance policies. Before you select your insurance coverage, understand your area and the types of disasters to expect. With that, select a mix of coverage types that cover all these disasters.
Insurance companies don't anticipate war, especially in the U.S. Also, war is costly, and the amount of damage it causes would bankrupt insurance companies. If your home is destroyed due to an act of war, such as an invasion, your homeowner's insurance will not cover the damage.
However, if your home is damaged due to an act of terrorism, your home insurance is likely to cover the damage.
Your homeowner's insurance is to cover events that are beyond your control. This means that if you neglect your home and postpone maintenance for years, don't expect a new house when it crumbles down.
The same applies if you neglect tree maintenance and a branch falls on your house and damages your roof. Other exclusions due to negligence include termite infestations, bed bug infestations, wear and tear, water damage caused by lack of maintenance, and sewer backup.
Some of these exclusions, such as a sewer backup, aren't typically covered, but you can add them to your policy. The extra coverage will cost more per month.
With apps such as Airbnb, homeowners can now entertain guests and earn money while at it. For those who've dealt with guests, especially strangers, you know anything can happen. You can have the most caring guest or others who will party and destroy everything in your home.
This is the issue with home-sharing; you can never be too sure who you're letting in your home. In addition, if the person is injured or damages your property, your home insurance will not cover the damages or medical bills.
Since your standard home insurance won't cover home-sharing, ask if your insurance company offers home-sharing insurance.
Contact a company like The Lofrumento Agency, Inc. to learn more.