You’ve just made the biggest financial decision of your early adulthood. You kept track of your credit score properly and found a lender. You sacrificed morning lattes and extra guacamole to save up for a down payment. You’ve signed a tome of paperwork and are officially a homeowner.
There is so much to learn. You have homeowners insurance, but do you know what that does and does not cover? Homeowner’s insurance is necessary for many loans, especially if you are a first-time homebuyer. It gives you peace of mind to know that your home, other structures on the property, and personal property are protected from major weather disasters and theft.
Here’s the lowdown on what is not covered by homeowners insurance. It’s worth taking a closer look at your policy or asking these additional questions with your insurance agent.
Are Natural Disasters Covered By Homeowners Insurance
Most insurance coverages secure your belongings in case of damage by fires, lightning strikes, windstorms, and hail. However, if you know that you live in an area prone to earthquakes or floods, you may have to purchase additional coverage. Additionally, if you experience water damage as a result of an earthquake or flood, this is not covered in a typical homeowner’s insurance policy.
Maintenance Issues
Unfortunately, routine maintenance problems are not covered by homeowners insurance. The best protection against problems such as rodent damage, rust, rot, mold, or general wear and tear is to practice preventative maintenance. Damages from termites, insects, birds, or rodents can quickly become exorbitantly costly. Practicing regular preventative maintenance now will help save you thousands of dollars later.
Personal Vehicle
The insurance policy between an auto and homeowner’s coverage can vary greatly. It is worth reading the fine print or asking for additional clarification from your friendly neighborhood insurance agent. If the vehicle itself if it’s damaged, it may not be covered by homeowners insurance, but it may provide some coverage for items that may be stolen from your car.
Roof Replacement
This goes along with practicing regular preventative maintenance. If your roof is damaged from a weather disaster, it will typically be covered by homeowners insurance with a standard policy. However, if your roof has deteriorated due to neglect or general wear-and-tear, this may not be covered.
Sewer Issues
Most standard homeowners insurance policies don’t cover the devastating damages of a sewage backup. However, if you have a little know-how, you can prevent a sewer backup if you know what typically causes them. Keep an eye out for these potential sources of damage: overgrown tree roots, mixed stormwater, and raw sewage pipelines, outdated sewage systems, or sanitary main blockages.
Contact Hosto Financial & Insurance Services To See What is Covered By Homeowners Insurance
This provides the big, general brushstrokes of what isn’t typically covered by homeowners insurance policy. If you aren’t able to get additional coverage or endorsements on your policy, a lot of headaches can be saved later by implementing regular preventative maintenance. Employ a termite expert, regularly inspect your space for rust or mold, and check your roof if you’ve recently experienced severe weather.
When you buy your first home, you want to be sure that your investment is protected as much as you can. Because each state and circumstance is so unique, it’s worth reading the fine print and engaging in productive conversation with your insurance agent. Your insurance agent is there to help; don’t be shy to ask questions to be sure you have the best understanding of your policy.
If you are seeking advice about getting home insurance, give us a call at (618) 779-5808.
Do you know what the standard deductible for homeowners insurance claims is? Read more here.
