When something unfortunate befalls your home, your home insurance is supposed to be there to save it and in some sense, you from the unnecessary and unforeseen expenses.
However, each and every coverage has it’s own limits. Today, most of the homeowners just pay no time to understand their home insurance policies and simply remain under the notion that their insurance will pay for any type of damage. This is utterly wrong.
Surprisingly, a recent survey conducted by Bankrate found that 81% were aware flooding is not covered by regular homeowners insurance. You, perhaps know that earthquakes too require special insurance. Yet, you may not know that there are many other types of damages that are excluded from your basic policies as well.
The most unfortunate thing is that many policyholders learn about the exclusions the hard way - when they approach to file a claim.
Following are 5 hazards that a standard home insurance policy may not cover:
1) Mold: According to Insurance Information Institute (III), in the United States, at least 1,000 species of mold are common. A breakout of mottled mold on walls not only looks odd but also poses serious threats to the residents of the house. According to Centers for Disease Control and Prevention, the diseases include severe allergies and breathing difficulty.
In spite of all these, a regular home insurance policy usually either limits coverage or mold damages or straightway excludes it.
2) Act of terrorism: The recent bombings in Boston Marathon were a reminder that terrorists can hit you at anyplace and anytime. According to the Insurance Information Institute (III), terrorist attacks that include usage of nuclear, biological, and chemical weapons are considered as fundamentally uninsurable.
However, a standard homeowners insurance does cover damages due to explosion, fire and smoke and these are likely to happen in an attack originated by terrorists.
3) Termite infestation: A colony of just 500 can silently and systematically destroy your house. Wooden platforms that are in touch with the soil provides termites with a ready source of food and entry. Again, moisture deposited around the foundations gives termites a source of food, entry, and the required water they need to survive. With time, these termites damage or destroy support beams and other wooden materials within a house. According to an estimate by the National Pest Management Association, each year termites cause $5 billion in damage across the US.
If these unwanted guests get into your house somehow, never expect that your insurer will bail you out.
4) Sewer backup: America’s sewer pipes are rapidly ageing and some of them are more than 100 years old. As more homes got connected to these dying pipes, sewage backups went live. These backups supports to drain out both stormwater and raw sewage. However, sometimes these channels get perplexed by blockages from tree roots that work their way into sewer-line cracks.
When a sewer backs up into a home, it can damage floors, walls, furniture and electrical systems and your home insurance provide won’t cover the damages.
5) Sinkholes: According to the U.S. Geological Survey, In the United States, sinkholes cause the most problems in Florida, Texas, Alabama, Missouri, Kentucky, Tennessee and Pennsylvania. If you are residing in any of these states, take extra measures before a sinkhole swallows up your furniture. Check out with your home insurance provider to see if they include sinkholes in their coverage of their standard home insurance policy.Blog Category