What’s Not Covered by Your Standard Home Insurance?

Understanding the ins and outs of home insurance coverage can be a critical aspect of responsible homeownership. In addition to complying with various requirements, such as those established by mortgage lenders and homeowners associations, you’ll need the right policy to secure your financial interests. This makes it paramount that you understand the capabilities and limitations of standard home insurance coverage.

Perils Often Excluded From Coverage

Certain incidents and subsequent losses may not be covered under a standard home insurance policy, especially in regions where such events are more likely. Although the availability of coverage may vary depending on various factors, such as your location and insurer, you should generally not assume that the following are included without reviewing your policy:

• Earthquakes

• Floods

• Hurricanes

• Windstorms

• Wildfires

Additionally, claims may be denied if an insurance carrier concludes that losses occurred due to negligence or poor maintenance, such as failure to take care of your roof or plumbing systems.

Other Limitations to Consider

Your home insurance also includes general coverage limits, meaning that losses may not be fully recouped even if an incident and resulting losses are included in your policy. For example, if you renovate your home or otherwise make improvements, the estimated rebuild cost and value will likely increase. This means you’ll need to adjust your coverage and increase your policy’s limits. Failing to do so could lead to being underinsured, meaning your maximum payout would not be sufficient to pay for a total loss.

Standard home insurance policies may also be insufficient for covering particularly valuable items. When considering fine art, jewelry, furs, collectibles and other expensive items, additional coverage may be needed. This can often be achieved by purchasing scheduled property coverage, which can subsidize the policy limits of your home insurance and ensure you can recoup the full cost of repairing, restoring or replacing belongings.

We’re Here to Help

Contact Best Florida Insurance Services Inc. today to learn more about home insurance options or get a free quote.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.