Whenever we purchase our own home, we want to make we get the best insurance policy available, helping us protect our house and our future in case of an unfortunate event. There are many myths and misconceptions surrounding home insurance, and it is important to check with our insurance company what exclusions might come with the plan, this way we ensure full understanding of what our policy covers and what it doesn’t cover.
Knowing exactly what kind of coverage we’re getting when we decide to purchase an insurance policy will also help us save a lot of money in the long run as well, because the more we understand our coverage and the more questions we ask our insurance agent, the more informed and prepared we will be in case we need to file a claim with them. If we live in an area that might be prone to floods or earthquakes, or in a region where termites or other invasive plagues are likely to be found, if we are often throwing parties and having people over to our home, or if we only want to protect as many of our valuable items as possible in case of misfortune, we want to make sure we are covered, and that the insurance policy we purchased was the right one for us.
Floods and Earthquakes Are Covered
Natural disasters like floods and earthquakes can only be foreseen to a point, which forces us to be as preventive as we can in case an incident like these happened to damage or, worse, destroy our house.
Many Insurance companies will consider natural disasters to be Acts of God, and usually, coverage for this type of situations is not part of your home insurance, and instead, companies will offer a separate Flood Insurance add-on to your Home coverage as an additional way to stay protected should you be affected by one.
I’m Protected Against Termites and Plague Damage
Preventing damage that a plague might cause to your house might take more effort than we would like, but being cautious and doing all we can to keep infestations from destroying our home will be a wise decision, and investment too, since most home insurance policies will not cover such damage. The most common destructive infestation is having termites damaging the structure of our house, especially if it is made out of wood, however termites can also damage furniture, plaster, metal, clothing, and almost anything that comes in their way.
According to the National Pest Management Association, termites generate a damage of $5 billion dollars every year.
The only scenario on which your Home Insurance company might be able to cover the damages might be if the termites damaged a gas pipe, for example, causing a fire and resulting in partial or total loss of your property, but the best option is making sure we have constant check ups and repairs to our home, as it is estimated that significant termite and plague damage takes up to 3 years to start being noticeable, which will make it way less manageable and in that case, less likely for your insurance to intervene.
I Don’t Need A Valuables Inventory
It is common belief that all our goods and belongings will be replaced by our insurance company in case of loss, or that we can lie to our insurance company about the valuables that were part of our property to get the most out of them. This is not necessarily true, as many items such as furs, jewelry, fine art and other type of commodities will need a separate coverage plan.
For those valuables that are included in your insurance, you want to make sure you are as specific and detailed as possible when keeping record of your goods, and a good idea is having an inventory, and update it regularly, making sure you have the corresponding information and documentation about your items, like serial numbers, and receipts.