What Things Does a Home Insurance Policy Not Cover
Owning a home is a privilege for most people. After buying it, you will want to protect your costly investment with a good home insurance policy. It is easy, however, to buy home owners insurance too quickly and have a policy that may not cover all that you think it will. As a result, many homeowners mistakenly believe that they are covered for things that their insurance policy will not cover.
Since there are so many different things that can happen to your home in the way of causing a significant loss, you should dig out your homeinsurance policy and discover exactly what is and what is not covered in it. This is especially important if, when you bought your home, you were looking for low cost home insurance quotes. The truth is that you probably are not covered for all the things you think you are which could result in a loss of thousands – or even tens of thousands of dollars.
Here are some things that you will need to find out if your home is covered for – because it probably is not.
Home Business Equipment
If you have a business in your home and you have a lot of business equipment and computers, then chances are rather good that at least some of it is not covered under your homeowners insurance policy. Unless you buy special coverage for your business equipment and/or buildings, you probably are only insured for about $2,500 for all of your business equipment.
When you go and talk to your insurance agent about adding business coverage to your homeowners insurance policy, be sure to ask about what other kind of coverage you may need. If you have clients or visitors come on to your property, you are liable if someone should get hurt, and a typical homeowner's policy may not provide enough coverage. Also, in the event of a loss, you can be given money to relocate, receive an income (for employees, too) until you get re-established, and other features that may be very useful to you in the event of a loss. Special insurance packages are also available called a Business Owners Policy (BOP).
Collections, Art, Jewelry and Antiques
Any kind of collections that you have will increase in value over time. A standard homeowners insurance policy does not cover the increased worth, but may only give you the depreciated value when a loss occurs. It will depend on whether you are insured for actual value or for replacement value. Actual value will only give you the purchase value minus any depreciation, but replacement value will give you the amount it will actually take to buy that same item today.
Other things that may come under this same type of situation are things that you do not want to get an actual value for. They have increased in value and you will not get their value if you have a loss. This includes things like art pieces, jewelry, and antiques. These types of items will have to be appraised and coverage will need to be purchased separately. Guns and furs also come under this category.
Watercraft, Trailers, and ATV's
These vehicles may have limited coverage, depending on your policy. Be sure you are aware of what is covered and what is not. Oftentimes, an ATV may not be covered when taken off your property. Be sure you know the exact limitations of your coverage.
Flood, Earthquake and Hurricanes
Typical homeowner’s policies do not cover your home for floods, earthquakes and hurricanes. This is especially true if you live in an area where these events regularly occur. This type of coverage can usually be purchased separately, but you will certainly want to look into the company’s record of payouts before buying. If you are in an area where these occur, you certainly want to get covered for it quickly – because losses in these areas can be total.
Household Content
In most cases, a home owners insurance policy will only provide coverage for about 50 percent of the contents of a home. You should also know that you will need to have a good home inventory record of it, too, or you can expect a much greater loss. Basically, if you cannot prove you owned it, then you will not be reimbursed for it - not even 50 percent of it. Check with your home owners insurance company to see what they require for an inventory record, which often may be done on video or with a camera – and don’t forget to keep it in a safe place – outside of your home.
