While natural catastrophes and other “acts of God” and acts of war are normally not covered by homeowners’ insurance, the vast majority of potential loss situations are. But what if you actually DO live in a storm or flood zone? Or perhaps a region prone to earthquakes? In the case of earthquake and flood insurance, you’ll need either additional coverage or a rider added to your current policy. Identity recovery coverage will compensate you for costs you incur as a result of identity theft, and additional coverage for sewage and drain blockage is also available.
Floods
Standard homeowner’s insurance policies do not pay out for flood damage. A standard homeowner’s policy does not cover flood damage. The National Flood Insurance Program, overseen by the Federal Emergency Management Agency, handles the majority of flood insurance policies. As reported by the I.I.I., the maximum amounts of coverage for a home’s structure and contents are respectively $250,000 and $100,000. (III).
Shifts in the Earth
Natural disasters such as quakes, landslides, and sinkholes are typically not covered by standard homeowners’ policies. It’s encouraging that specific insurance plans may be procured for such occurrences. If you reside in a state or region that is prone to one or more of these dangers, you should know it. Those living in California (or Oklahoma, due to fracking) should definitely invest in earthquake insurance, while those in Florida and Tennessee might want to look into sinkhole protection.
Attacks by Dogs
Some insurance companies may not cover you if you own a dog from an aggressive breed like a German Shepherd or Pit Bull. If an insured dog attacks a visitor, the owner’s liability insurance will pay for medical expenses and legal fees up to the policy’s liability limits (usually between $100,000 and $300,000). If a claim is filed and the amount is more than your policy’s maximum payout, the additional cost is your responsibility.
Expensive Gems
Your homeowner’s insurance policy may cover jewelry, but that probably won’t be enough to replace a lost engagement ring or priceless antique. According to the Insurance Information Institute, most insurance companies have a cap on the amount they will pay for jewelry theft at around $1,500. Your pricey jewelry will need to be assessed before you can get a rider, also known as an endorsement, to cover it. In addition, you can increase the liability limits on your homeowner’s insurance.
Verify Your Insurance
Review your plan carefully to understand its limits and exclusions before believing your homeowner’s insurance policy would cover any occurrence that might harm your property and assets. Contact your insurance company if case you have any doubts about whether or not a certain loss or damage is covered. It is better to be safe than sorry, so ensure you have enough insurance to cover the unexpected.
