Buying a house comes with a great responsibility of protecting the house from any damages. The key to that is homeowners insurance. A homeowners insurance covers damage to your home, personal belongings or other structures on your property.
But to have complete peace of mind, one should understand what events causing damage to your home or personal belongings are covered by a homeowners insurance?
There is no single answer to that question. The homeowners insurance policies may vary from state to state. In fact all policies may differ from each other based on the insurance plan you choose or the area you live in. However, there are a few problems that are typically covered by all policies while there are some issues that aren’t covered.
Here’s what you need to know.
What is covered?
Homeowners should take note that a homeowners insurance typically covers:
- Most, but not all, natural disasters
- Accidents including injuries to others on your property and
- Theft.
Natural disasters
A homeowners insurance covers losses incurred by fires, winds, lightning, hailstorms or other adverse weather conditions. These losses are very common and it is important to know that you can file a claim in any such event.
Your Home insurance company will pay for any repairs and rebuilding work. The insurer may even pay for a hotel room if you have to move out to get the house ready.
The natural disasters that aren’t typically covered by homeowners insurance are earthquakes and floods.
Why are Earthquakes and Floods not covered?
The general rule is that only the losses deemed to be sudden are covered by homeowners insurance.
Damage caused by flooding is not covered because it is considered a gradual event rather than accidental. Since the water from flooding won’t directly damage the house, it’s not covered by homeowners insurance.
Similarly Earthquakes are not generally covered in a homeowners insurance however a fire induced by an earthquake may be covered.
It may be worth buying specific insurance plans for flooding and earthquake damages.
Liability coverage for Accidents
Homeowners are often involved in accidents that leave someone hurt at your house or on your property. If it is an unintentional mishap that can be legally attributed to you, the liability provision of your homeowners’ insurance policy will typically cover any personal injury claim that is filed.
The accident may happen within your house or outside of it. The coverage often also includes injuries incurred on others by your pets.
Theft
Theft is obviously a very common act that harms your personal belongings. Theft and break-ins are covered under the personal property coverage in homeowners insurance. Any damages caused to your home, like a broken window or a door are also covered.
Other Conditional Coverages
- Damage caused to your roof by a falling tree or heavy snowfall may be covered. It depends however on how well the roof is maintained.
- Water damage caused by sudden pipe bursts may be covered. You have to make sure that the pipes weren’t already in a bad state.
- Water leakage caused by a fire maybe covered
- Mold caused by a flooding or any other preventable water leakage is generally not covered.
Now you know what is generally covered by a homeowners insurance. However, policy coverage documents and details must be thoroughly consulted as these policies may vary.
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