Experiencing a house fire, having water damage, or discovering mold is stressful. Not knowing what protection your insurance provides compounds that stress. Policies differ by company, coverage purchased, and other factors but there are some basics that are generally consistent. Educating yourself before a loss occurs can make the process easier and can help return things to normal sooner rather than later. There is much information available on this topic. Unfortunately not all of it is accurate or easily understood. We hope to provide a general overview of how you can use homeowners insurance to protect yourself and your most valuable asset.
- Flooding (rising ground water) is excluded by most home owner policies
- Mold is either excluded or “capped” by most homeowner policies
- Sewage backups are either excluded or “capped” by most homeowner policies
- “Capped” means your coverage is limited to a specific dollar amount
- All homeowner policies carry a deductible.
- Your policy should be reviewed every year
- Purchasing a policy with a higher deductible, lowers your premium, but you should
never agree to a deductible higher than what you can reasonably pay out of pocket
in the event of a loss
- Past claims history for your property impacts the cost of coverage
- If you rent, you should still have renters insurance to protect your belongings OR
to cover structural damage caused by your property
- The insurance company can not legally tell you which contractor or restoration
professional to use
- The discovery of rot or rust may affect your coverage of a water damage
- The source of your damage is rarely covered by your insurance
- Catastrophes (tornado, hurricane, wind) are generally covered by a standard policy
- Water damage and flooding are separate losses. Water damage is generally covered.
Flooding is not
- Earthquakes are typically excluded
- Neglect is not covered by insurance
- Upgrades required due to local building code are not always covered and may cost
thousands out of pocket
- The number 1 mistake of most homeowners is not calling a restoration professional
(like Blue Sky) soon enough. The damage spreads quickly and the cost increases substantially
Search our site for “insurance” for more articles regarding policy types, claims process, and coverage information.